US Stocks End Week Lower on Fears of Another ‘DeepSeek Moment’
US markets closed the week on a downward trend as investors reacted to new competition in the artificial intelligence sector. The Nasdaq 100 Index dropped 1.5 percent, marking its most difficult week in nearly a month. Tech stocks faced significant pressure throughout the session.
Semiconductor companies felt the most immediate impact. The Philadelphia Stock Exchange Semiconductor Index fell 1.6 percent on Friday. This decline pushed the index into a bear market, defined by a 20 percent drop from its June record high. The selloff stems from anxiety surrounding the release of a new AI model from a Chinese startup, which some market observers are labeling as a DeepSeek moment.
Major technology firms also struggled to hold gains. Meta Platforms Inc. led the broader decline among the Magnificent Seven cohort, highlighting a wider retreat from high-growth tech valuations. Traders are now monitoring whether this rotation out of chipmakers and tech leaders signals a sustained shift in market sentiment or a short-term correction.
Financial analysts are watching these levels closely. The rapid decline in semiconductor valuations reflects deeper concerns about how international technological advancements might affect domestic market dominance. With the index now in bear territory, investors expect increased volatility in the coming weeks as companies adjust to the changing competitive landscape.