Market Turbulence Follows DeepSeek's AI Innovation

In an unexpected turn of events, the U.S. stock market experienced a significant downturn before the opening bell. This was largely due to the recent unveiling of capabilities by Chinese AI company DeepSeek, which has quickly risen to the top of the Apple App Store charts. The tech-heavy Nasdaq 100 was hit the hardest, with notable declines in major tech stocks.

Impact on Major Indices and Currencies

As of 5:52 am ET, the Dow Jones Industrial Average saw a decrease of 0.68%, equivalent to 300 points. The Nasdaq 100 suffered a more severe drop, plummeting by 5.06% or 1030 points. The S&P 500 wasn't spared, experiencing a 3% decrease. Meanwhile, the euro showed a slight increase against the dollar, trading at 1.05065 by 5:49 am ET.

Nvidia's Sharp Decline

Among the most affected was Nvidia, which dropped by 8% initially and continued to decline to 10%, according to the latest data. This reflects the growing concern among investors about the potential impact of DeepSeek's advancements on the Western AI industry's lead.