Market Tremors: China AI Model Challenges US Dominance

Asian markets and US futures fell as investors reacted to China's DeepSeek releasing an AI model to compete with OpenAI's ChatGPT. This has sparked concerns over US tech supremacy. Meanwhile, Trump's tariffs affected currencies, while market volatility was heightened amid oil price drops and upcoming central bank meetings.

Asian markets and U.S. stock futures faced a downturn early Monday as the launch of a free, open-source AI model by Chinese startup DeepSeek stirred market dynamics, putting pressure on U.S. tech dominance.

Additionally, the U.S. dollar gained strength following President Donald Trump's imposition of sanctions and tariffs on Colombia, leading to fluctuations in global currencies. This move caused notable slumps in major stock indices as investors remained wary of potential further tariffs on top U.S. trading partners.

The market volatility extends into a pivotal week with upcoming decisions by the Federal Reserve and the European Central Bank on monetary policy. Meanwhile, commodity prices including crude oil and gold declined, further adding to market uncertainty.

(With inputs from agencies.)