from ZeroHedge:
US equity futures and global markets are tumbling as rising weekend fears that China’s DeepSeek’s R1 AI platform could lead to a collapse in capex spending plans, have culminated in a wholesale rout of tech names around the world. And since tech is by and far the most important sector to global equities, almost nothing has been spared (with the possible exception of the energy sector which for months was used as a pair trade to fund tech longs). As a result, what as of 6pm on Sunday night (when futs opened) was a mere DeepSelling trickle…
TRUTH LIVES on at https://sgtreport.tv/
*NASDAQ 100 FUTURES DROP 1%
DeepSelling
— zerohedge (@zerohedge) January 26, 2025
… has since transformed into a full-blown DeepSink rout, sending S&P futures down as much as 3% and Nasdaq futures down 5%, before a modest bounce. As of 8:00am, S&P futs were down 2.3%, and Nasdaq futs tumbled 3.9%, on futures volume that was about four times the 30-day average, as the the DeepSeek story forces investors to “question the market position of all the MegaCap Tech names and the entire AI supply chain.” Mag7 names are all plunging premarket by 4-6% while some former leaders are getting absolutely nuked such as NVDA -11%, AVGO -10.8%, VRT -18%. The global risk off panic means bond yields are collapsing while the USD is moving lower and commodities are mixed. Mag7 earnings take on heightened importance this week, but the SPX may be down 4-5% ahead of TSLA’s earnings on Weds. As JPM’s market intel team puts it, “Is AI dead or is one of the greatest buy-the-dip trades in recent memory?” Separately, President Donald Trump’s threats to impose tariffs on Colombia, which sent the dollar higher, also contributed to the contracts’ decline. Trump pulled the threat after reaching a deal with the Colombian government on the return of deported migrants.
