STAN CHOE, AP business writer
New York (AP Communication) -The superstar on Wall Street is falling on Monday, as Chinese competitors can turn over the enthusiasm of artificial intelligence they have enjoyed.
The 500 S & P species fell 1.9 % during day transactions, recording a low price for more than one month. Big tech shares have lost the largest loss of Nasdaq, lowering Nasdaq’s comprehensive stock price by 3.3 %.
However, stock prices other than the AI -related industry were much more focused, and at 11:40 am in the eastern time, the average of 30 Dow Industrial shares fell only 58 points (0.1 %). Dow did not focus much on high -tech stocks compared to S & P500 and Nasdaq, but in the morning was on a smaller orbit.
The impact on the financial market came from China. A company named DeepSeek has announced that it has developed a large -scale language model that can compete with a huge US company at a few minutes of cost. DeepSeek’s apps have already been ranked at the top of the Apple’s App Store chart by Monday morning, given that the US government has restricted Chinese access to top AI chips. He said that such feats would be particularly impressive.
However, how much of DeepSeek’s announcement will ultimately shake the AI supply chain, from chip manufacturers that manufacture semiconductors to power companies aiming to power a vast data center that consumes computing power. There is a skeptical view.
“I don’t know if Deep Seek has found a way to avoid these chip -limit rules, and still not yet knowing what kind of chips have been used. Given that the information is from China. There are many skepticisms, “said analyst Dan Ives. Wedbush Securities.
Nevertheless, DeepSeek’s confusion shaked AI -related shares around the world.
In the Amsterdam market, the Dutch chip supplier ASML dropped by 7.4 %. In the Tokyo Market, the Japanese SoftBank Group has fallen by 8.3 % and has approached the original level until the White House has heard the announcement of the White House, who will participate in a partner that invests up to $ 500 billion in AI infrastructure.
And in Wall Street, the stake in Constellation Energy lost almost one -fifth and 19.5%of its value. The company has announced that it will restart the closed Three Mile nuclear power plants to supply power to Microsoft’s data center.
With all anxiety, investors have headed to bonds, which is safer than any stock. In response to the rush, US Treasury yield fell from 4.62 % to 4.54 % in the late Friday.
This is a sudden change in direction for the AI winner, which has been soaring in recent years, with the expectation that all the inflow investments will rebuild the global economy and bring huge profits in the process. These wonderful achievements have also caused criticism that the stock price has risen too much and that it is too fast.
For example, before the fall on Monday, Nvidia’s stock price rises from less than $ 20 to $ 140 in less than two years.
Other Big Tech companies also joined this enthusiasm and benefited from stock prices. Just on Friday, Mark Zuckerberg, Meta Platforms CEO, said that the company would invest up to $ 65 billion this year and make a significant growth of the AI team, but cover a considerable amount of Louisiana. He was discussing the construction of a large -scale data center. Manhattan.
Such a small group of companies became very dominant and became known as “Magnificent Seven”. According to S & P Dow Jones Index, these companies, such as alphabets, Amazon, Apple, Meta Platforms, Microsoft, Nbidia, and Tesla, accounted for more than half the total return of S & P500 last year.
Due to its huge corporate size, it has greatly influenced S & P 500 and other indices that increase the specific gravity of large companies. This indicates the risk of overbeating a small number of wins, and market experts call this a “intensive risk.”
“It may feel good when a small number of names and ideas are emerging,” said Brian Jacobsen, Chief Economist at Annex Wealth Management.
Nevertheless, he suggested that it will not overrease to the sudden fluctuation on Monday. “China’s news may be exaggerated, in which recent market movements may be seen,” said Jacobsen. “The news may be true, but in that case, a new investment opportunity will be born.”
More turbulence may occur in the future. Apple, Meta Platform, Microsoft, and Tesla will report how much profits they made next week at the end of 2024.
In particular, with the rapid rise in US Treasury yields, the company has the pressure of continuing to make good profits, despite the decline on Mondays. As bond interest payments increase, the stock price will be reduced.
So far, major US companies have reported good financial results than analysts expectations. AT & T rose the most on Monday, and stock prices rose 6 %.
In the overseas stock market, the movement of a wide range of indexes in Europe and the whole Asia was as strong as the major US high -tech stocks. The CAC40 in France fell 0.2 %, and Germany’s DAX fell 0.5 %.
In Asia, manufacturing surveys showed that China’s export order had fallen to a low level for the first time in five months, and the stock price in the Shanghai market fell by 0.1 %.
The Fed will hold the latest policy meeting in the second half of this week. Traders do not anticipate recent weak economic indicators to reduce the main interest rate reduction of the Fed. According to CME Group data, they are virtually convinced that the central bank will be stably maintained.
Contributed by AP Business Writer Matt Ott and Elaine Kurtenbach.
This story has been revised. Meta plans to build a data center in Louisiana, not Manhattan.
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