Stock futures are significantly down as markets brace for a lower opening. Declines are expected for the Dow, S&P 500, and Nasdaq, raising concerns among investors.

There are growing worries about a new artificial intelligence program from a Chinese start-up, DeepSeek. Launched on January 20, this free assistant has rapidly gained popularity, surpassing established competitors like OpenAI’s ChatGPT. DeepSeek’s solution is not only more cost-effective but also relies on less expensive chips and data, making it an appealing option for users.

• This swift rise in popularity presents a considerable challenge to major tech companies.
• Companies such as Nvidia, Super Micro, AMD, and Broadcom have significant investments in AI technologies.

Additionally, geopolitical tensions are exacerbated by threats from former President Trump regarding tariffs on Colombian imports. This situation further complicates the market outlook.

📎 Related coverage from: barrons.com