AI Model Shakeup: DeepSeek Challenges Market Giants

The S&P 500 and Nasdaq experienced declines as DeepSeek, a Chinese startup, introduced an AI model that challenges Nvidia and major tech firms. DeepSeek's app outranked ChatGPT on the Apple App Store, raising concerns over AI chip demand. Defensive sectors like healthcare saw gains amid tech downturn.

On Monday, the S&P 500 and Nasdaq experienced declines, largely attributed to the rising success of DeepSeek, a Chinese AI startup. Their new model challenges leading chipmakers, notably impacting Nvidia's share value.

DeepSeek's assistant app became the top-rated free app on Apple's App Store, surpassing ChatGPT and contributing to shifts in tech stocks, including significant drops for Microsoft, Google, and Nvidia.

The Cboe Volatility Index, reflecting market uncertainty, peaked as defensive sectors like healthcare thrived. Globally, the U.S. and Colombia made key trade agreements, while investors anticipate the Federal Reserve's interest rate decisions.

(With inputs from agencies.)