The Chinese#DeepSecmodel is causing panic in global markets, as both risky and safe assets are witnessing a large-scale selling wave amid fears that Chinese artificial intelligence applications will threaten American technological dominance. Here's what's happening
Contrary to popular belief that it requires huge amounts of energy and high costs, the Chinese company "DeepSeek" has demonstrated the ability to develop an artificial intelligence model at lower costs, raising concerns about competition regarding #artificial_intelligence
On Wall Street, the losses were collective for the three major stock indices, the most declining of which was the technology index #Nasdaq, which lost more than 3% of its value, before the Dow Jones reversed the downward trend.
#Nvidia stock recorded a strong loss of more than 16%, causing the company's market value to fall by more than half a trillion dollars, and it moved away from the top of the largest companies in the world in terms of market value, and is now ranked third after#Appleand #Microsoft.
Safe-haven assets were not immune to the sell-off, with spot gold down more than 1.4%, or $39, to trade at $2,733 an ounce, as investors liquidated their positions in the yellow metal.
The red color also dominated the cryptocurrency market, as #Bitcoin, which is seen as a safe digital asset, lost more than 5% of its value and is trading below $100,000.
Risk aversion, the prevailing sentiment among investors, extended across other asset classes, with US Treasury yields falling to their lowest levels in 3 weeks and the US dollar index hitting its lowest level since mid-December.
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