US Stock Market LIVE: DeepSeek wipes out $600 billion off Nvidia market value, biggest in Wall Street history

Jan 28, 2025
us-stock-market-live:-deepseek-wipes-out-$600-billion-off-nvidia-market-value,-biggest-in-wall-street-history

1 min read . Updated: 28 Jan 2025, 06:45 PM IST

Nikita Prasad

US Stock Market LIVE Updates: Nvidia Corp, the poster child of the AI frenzy, sank 17 per cent on Monday and reported the biggest market-cap loss for a single stock in market history.

US Stock Market LIVE Updates: China's AI powerhouse DeepSeek caused a massive rout in the previous session on Wall Street's indices with the tech-heavy Nasdaq down five per cent, led by Nvidia. REUTERS/Carlo Allegri/File Photo (REUTERS)Premium
US Stock Market LIVE Updates: China’s AI powerhouse DeepSeek caused a massive rout in the previous session on Wall Street’s indices with the tech-heavy Nasdaq down five per cent, led by Nvidia. REUTERS/Carlo Allegri/File Photo (REUTERS)

US Stock Market LIVE: Futures tied to the S&P 500 and the Nasdaq were higher on Tuesday after steep losses in the previous session, when the popularity of a low-cost Chinese artificial intelligence model rattled stocks of U.S. companies invested in the technology.

Monday’s selloff came after Chinese startup DeepSeek launched AI models it says are on a par or better than industry-leading models in the United States at a fraction of the cost.

AI chip leader Nvidia rose 4.8% in premarket trading, a day after $593 billion was wiped off its market value in the biggest single-session loss for any company.

Other AI-linked stocks also regained some ground, with Oracle and Broadcom rising 3.5% and 4%, respectively.

Power companies, which are expected to see a surge in demand from energy-intensive data centers needed to develop AI technology, were broadly higher after tumbling a day earlier. Vistra and GE Vernova added 4.6% and 3%.

The tech-heavy Nasdaq dropped more than 3% on Monday, its worst single-day showing in more than a month, while the benchmark S&P 500 fell close to 1.5%.

US stocks dropped sharply on Monday, January 27, led by technology shares, after surging interest in Chinese startup DeepSeek’s low-cost artificial intelligence (AI) model rattled Silicon Valley. With big tech getting crushed, Wall Street was set for its worst day since the last US Federal Reserve decision that roiled trading. From New York to London and Tokyo, equities got hammered.

The S&P 500 dropped 1.7 per cent and the tech-heavy Nasdaq 100 slipped four per cent. A closely watched gauge of chipmakers plunged nine per cent. Nvidia Corp., the poster child of the AI frenzy, sank 17 per cent and headed toward the biggest market-cap loss for a single stock in market history. The AI leader wiped of $500 billion of its market value and shed 21 per cent off its stock price in two days.

DeepSeek, which overtook rival AI platform ChatGPT to become the top-rated free application on Apple’s App Store in the US, says it uses lower-cost chips and fewer data, challenging a bet in markets that AI will drive demand along a supply chain from chipmakers to data centres.

28 Jan 2025, 06:23:28 PM IST

US Stock Market LIVE:

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28 Jan 2025, 06:00:34 PM IST

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28 Jan 2025, 05:42:58 PM IST

US Stock Market LIVE: Nasdaq futures bounce back after Nvidia gains 5%

US Stock Market LIVE: US stock futures staged a small rebound after Monday’s tech-fueled selloff as traders scooped up beaten-down chipmakers and power providers. S&P 500 futures added 0.4 per cent and Nasdaq 100 contracts gained 0.7 per cent following a three per cent retreat on Monday. 

Nvidia Corp. jumped five per cent in pre-market trading after plunging 17 per cent yesterday. Broadcom Inc. and Marvell Technology Inc. advanced. Constellation Energy Corp, which helps AI’s power-hungry data centers, gained 4.7 per cent after yesterday’s 21 per cent wipeout. In Europe, stocks climbed on the back of upbeat earnings.

28 Jan 2025, 05:13:38 PM IST

US Stock Market LIVE: DeepSeek rattles US tech stocks

US Stock Market LIVE: Several measures of stock market health suggest that Monday’s sudden slump was in fact mostly an isolated hit to the world’s biggest technology firms and AI-related shares. The Nasdaq 100 slid three per cent and Nvidia Corp. plunged 17 per cent — shedding almost $600 billion in market value in the biggest wipe-out in history. That came as Chinese startup DeepSeek’s latest model shook the belief that only Big Tech with huge budgets can compete in the artificial intelligence field — questioning the investment case that has favored the biggest players with rich valuations.

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