 As markets gear up for a week dominated by central bank meetings including Fed and ECB, sharp selloff in US tech stocks has stolen the spotlight. NASDAQ futures dropped more than -2%, triggering mild safe-haven flows into Yen, U.S. Dollar, and Swiss franc. Meanwhile, commodity currencies like Aussie and Kiwi suffered as risk sentiment deteriorated. At the heart of the tech pullback is chipmaker NVIDIA, which fell nearly -7%. This move followed news that a relatively unknown Chinese startup, DeepSeek, released an AI assistant rivaling ChatGPT, claiming to use lower-cost chips and minimal data. The implication is that the current bullish thesis on AI-related infrastructure—ranging from expensive high-performance semiconductors to expanded data center capacity—could face competition from leaner, lower cost solutions. DeepSeek, operating out of Hangzhou, has generated significant buzz by topping Apple App Store’s free apps chart on Monday, surpassing well-established AI tools. The startup's potentual remains uncertain, but the very notion that cutting-edge US technology could be challenged in China’s fast-evolving environment has unsettled investors. While it may be too soon to judge DeepSeek’s long-term impact, sentiment has clearly shifted, prompting a recalibration of risk assets and fueling a flight to safer currencies.... |
