U.S. stock futures plunged on Monday amid concerns that DeepSeek could undermine U.S. tech leadership
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Odaily reported that due to concerns that China's DeepSeek artificial intelligence model may disrupt the technology industry, US stock index futures plunged in early Asian trading on Monday. As of 10:12 am Hong Kong time, S&P 500 futures fell 1%, and Nasdaq 100 futures fell 1.9%. These trends indicate that the US stock market continued the downward trend of the spot trading session last Friday, after rising earlier this week following President Trump's inauguration. The Hong Kong stock market rose on Monday, with the Hang Seng Tech Index up 2% before the Lunar New Year holiday this week. In Tokyo, the stock price of Advantest Corp., a major supplier to Nvidia, fell 8.6%. Nirgunan Tiruchelvam, head of consumer and internet at Aletheia Capital in Singapore, said that DeepSeek products "seriously contradict the argument that Silicon Valley's massive capital and operating expenditures are the most appropriate way to address the AI trend. It makes people doubt the huge resources invested in AI." This week is an important week for the earnings reports of major tech companies such as Apple and Microsoft, while US futures prices have fallen. Profits of these companies are expected to slow, but valuations are still too high, which has again raised concerns about the sharp rise in the tech industry driven by AI. The release of DeepSeek has raised new questions and challenged the notion that China's AI technology is years behind the US.
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