DeepSeek Dominates App Store, Impacting US Tech Giants and Treasury Yields

In a surprising turn of events, the Chinese AI startup DeepSeek has surged to the top of Apple's App Store charts, causing significant concern across the United States. This unexpected rise has led to a notable decline in the stocks of several US tech companies, including Nvidia and ASML, as investors react to the potential disruption in the AI market.

US Treasury Yields React to Market Shifts

The impact of DeepSeek's success was felt beyond the tech sector, with US Treasury yields experiencing a sharp decline. The yield on the two-year note fell by 7.6 basis points to 4.204%, while the 10-year Treasury bond yield dropped by 11 basis points to 4.525%, marking its lowest point since December 20. The 30-year note also saw a decrease, with yields slipping by seven basis points to 4.779%.

Bond Futures on the Rise

In contrast to the falling yields, bond futures observed an increase, moving inversely to yields. The two-year note rose by 0.14%, the 10-year bond was up by 0.61%, and the 30-year note saw a 0.97% increase shortly thereafter. This shift underscores the market's volatility in response to DeepSeek's emergence and its potential implications for the tech industry and beyond.