Global Markets Wobble as Nvidia's Massive Selloff Sparks Fears

Global markets steadied after a tech-led selloff incited by Nvidia's record loss due to competition from a Chinese AI model, DeepSeek. As stocks slightly rebounded, investors remain cautious, anticipating the impact on tech valuations and potential tariffs as central bank meetings approach.

Amidst a turbulent spell in global markets, U.S. stock futures and European shares steadied Tuesday after a dramatic tech selloff led by Nvidia's historical drop. Investors returned to the fold, though apprehensions lingered across asset classes.

The turbulence was marked by Nvidia's 17% plunge on Monday, erasing nearly $593 billion in market value— the largest one-day loss ever — after China's DeepSeek AI model posed a competitive threat. Despite a slight Nasdaq futures boost and an increase in European tech stocks, steady nerves failed to take root. Analysts remained vigilant, assessing tech valuations and strategic implications.

Adding to market volatility, new U.S. Treasury policies, including potential tariff hikes by President Trump, kept traders on alert. Meanwhile, oil prices recouped some losses and central bank meetings approached, casting forecasts of stable Fed rates and ECB cuts.

(With inputs from agencies.)