After a recent reduction to limit their influence, the group of Nvidia, Apple, Microsoft, Amazon, Meta, and Alphabet still represents 45% of the Nasdaq 100 index. Paul Nolte from Murphy & Sylvest Wealth Management commented on this: "It is undoubtedly a wake-up call that we are not the only ones in town."
Stocks on Wall Street have fallen this Monday, January 27, due to the most recent presentation of DeepSeek, a Chinese artificial intelligence startup that is challenging the bullish trend of tech stocks. The Nasdaq has dropped 3.20% to 19,316 points; the S&P 500 has decreased 1.91% to 5,984 points, while the Dow Jones has gained 0.06% to 44,449 points. Analysts from Grupo Financiero Ve por Más emphasize that questions about the high valuations of the U.S. tech sector arise from the emergence of more economical artificial intelligence models in China.
DeepSeek is an AI startup founded in 2023 by Liang Wenfeng, the head of the AI-based quantitative hedge fund High-Flyer. The company stands out for developing open-source artificial intelligence models, allowing the developer community to inspect and improve the software. It differentiates itself from other chatbots by articulating its reasoning before responding to a request.
Regarding the share prices of major tech companies, the firms known as Wall Street's "magnificent seven" show fluctuations: Nvidia has fallen 15.25%, Apple has gained 3.41%, Alphabet has dropped 3.15%, Microsoft has lost 3.63%, Amazon has conceded 1.17%, Meta has risen 0.69%, and Tesla has fallen 2.12%.
As for the stock markets in Mexico and Europe, the Price and Quotation Index of the Mexican Stock Exchange has fallen 0.14%, while the FTSE-BIVA has advanced 0.17%. In Europe, the German DAX has fallen 0.46%, the French CAC 40 has decreased 0.23%, Spain's IBEX 35 has risen 0.28%, and London's FTSE 100 is near 0.04%.
DeepSeek has licensed interested parties to develop chatbots using its technology and has experienced massive demand for its services since the weekend. The Chinese startup negatively impacted U.S. and European tech stocks by ranking its service among the most popular download lists. This prompted investors to question the inflated valuations of some of the largest U.S. tech companies. The severity of the sell-off of U.S. assets was proportional to the weighting of AI-based companies in the major stock market indices.
