DeepSeek Sparks Tech Market Turmoil

U.S. tech stocks dropped sharply on Monday as Chinese startup DeepSeek's low-cost AI model raised concerns about valuation. The Nasdaq fell 3.5%, leading to heightened volatility and a shift to safe-haven currencies. Tesla, Nvidia, and Broadcom shares fell significantly amidst global market fluctuations.

U.S. technology stocks experienced a significant drop on Monday, as the sudden interest in Chinese startup DeepSeek's low-cost artificial intelligence model cast shadows over the sector's high valuations. As a result, global equities plummeted, leading investors towards U.S. government bonds and safe-haven currencies like the yen and Swiss franc.

On Wall Street, the Dow Jones Industrial Average saw a slight increase, while the S&P 500 dipped nearly 2%, and the Nasdaq Composite fell by approximately 3.5%. Nvidia, renowned for its AI application chips, witnessed a sharp 16% decline, mirroring the losses of Broadcom and Marvell Technology.

Across Europe, the tech-driven STOXX 600 index declined over 3%. U.S. Treasury yields hit multi-week lows as the dollar weakened against key international currencies. Amid volatile market conditions, oil and gold prices also saw declines, setting the stage for crucial central bank meetings later in the week.

(With inputs from agencies.)