The main stock markets worldwide experienced losses, mainly influenced by the technology sector and Chinese competition in developing artificial intelligence at lower costs. This raised doubts about whether the market is overvalued. The tech-heavy Nasdaq suffered a 3.07% loss, followed by the S&P 500 with a 1.46% decline and a modest increase of 0.65% in the Dow Jones.
A notable collapse occurred in Nvidia's stock price, which fell by 16.97%, resulting in a historic loss of 592 billion dollars in its market capitalization, the largest in Wall Street history. Analysts from Banamex pointed out that the Chinese startup DeepSeek is generating concerns as it can create artificial intelligence models at a much lower cost and in a much shorter time than current semiconductor companies.
Mona Mahajan, investment strategist at Edward Jones, expressed concern over whether U.S. technology companies are overspending and need to improve their efficiency. Meanwhile, Luis Gonzali from Franklin Templeton Mexico indicated that DeepSeek demonstrated that artificial intelligence can be created at a lower cost, which was previously considered a high entry barrier.
Humberto Calzada from Rankia LATAM mentioned that high valuations in the technology sector could lead investors to take profits. Meanwhile, Marco Montañez from Vector Casa de Bolsa commented that the announcement from DeepSeek generated uncertainty but that it will be necessary to wait for more information to better assess the situation and possibly boost the prices of affected stocks again.
In other global markets, declines were reported in France, Spain, and the Euro Stoxx 50. In Mexico, the stock market continued to rise for six consecutive days. In Asia, the wave of sell-offs in the technology sector led to losses in Japan's Nikkei-225 and China's SZSE.
Regarding digital assets, declines also affected bitcoin, which temporarily dropped below 100 thousand dollars but later recovered. Increasing competition in AI from China and high valuations in the U.S. are raising concerns. Uncertainty in the stock market could erode speculative appetite for cryptocurrencies, despite favorable regulations promoted by Donald Trump. For Charlie Morris of ByteTree Asset Management, it is becoming increasingly difficult to differentiate between bitcoin and large tech companies as they are correlated in their movements.
