Market Hesitation: AI Innovations and Global Economic Tensions

U.S. stock futures and Asian shares outside China declined as investors assessed the impact of DeepSeek's AI launch and U.S. tariff sanctions on Colombia. The dollar rose against various currencies, and global market volatility was exacerbated by upcoming monetary policy decisions and geopolitical tensions.

U.S. stock futures and Asian shares plummeted on Monday as DeepSeek's AI model launch spurred concerns over technology disruption and U.S. market dominance. Meanwhile, President Trump's sanctions on Colombia over deported migrants heightened investor caution.

The Nasdaq Composite futures dropped 1.8% and S&P 500 futures 0.9%. Asian benchmarks followed suit, with Japan's Nikkei and Singapore's Straits Times index experiencing dips. Contrary to trends, Hong Kong's Hang Seng rose by 0.9% despite China's unexpected manufacturing contraction.

The dollar strengthened against several currencies amid market jitters. As additional tariffs loom, analysts expect the dollar's rise to be temporary. Global investors brace for significant monetary policy updates and geopolitical developments this week.

(With inputs from agencies.)