Nasdaq futures tumbled 944.75 points, or 4.31%; Dow futures sank 378 points, or 0.85%; S&P 500 futures slid 147.25 points, or 2.40%.
Most U.S. stocks fell in premarket trading amid concerns over AI progress from China's DeepSeek. Nvidia fell 13%; Microsoft, Amazon slid over 6%; Meta Platforms, Tesla, Alphabet fell around 5%.
Chinese artificial intelligence startup DeepSeek rocked global technology stocks Monday, raising questions over America’s technological dominance.
Buzz grew over the weekend about DeepSeek’s latest AI model being cost-effective while running on less-advanced chips, casting doubt on the validity of the sky-high valuations for companies like Nvidia Corp. Nvidia has led the global AI stock boom as its chips have been seen as essential to the technology.
“DeepSeek shows that it is possible to develop powerful AI models that cost less,” said Vey-Sern Ling, managing director at Union Bancaire Privee. “It can potentially derail the investment case for the entire AI supply chain, which is driven by high spending from a small handful of hyperscalers.”