Does China AI Threaten US Tech Dominance?
And just like that, the formerly high-flying US tech sector is on the defensive. If you blinked, you missed it.
Anxiety about the competitive threat from Chinese artificial intelligence lab DeepSeek triggered a sharp selloff in US equities on Monday, with the worst of the decline centered in tech. Chipmaker Nvidia was especially hard hit, suffering a near-$600 billion loss of market cap in one day.
The selling weighed on a broad measure of tech stocks. Using a set of ETFs, tech is suddenly the weak outlier so far in 2025. Although much of the equities market took a hit on Monday, all non-tech sectors are still firmly in positive terrain for the year.
