The world’s largest technology companies climbed after a sell-off that shook markets around the globe, with traders gearing up for the start of the megacap earnings season and the US Federal Reserve rate decision.
Advertisement
Equities rebounded, with the tech-heavy Nasdaq 100 up 1 per cent. Nvidia Corp. climbed 2.7 per cent, following its largest value loss in history. That bounce in the tech space also spilled over to the bond market, with US Treasury yields slightly higher across the curve. The dollar strengthened.
Wall Street had a rough start to the week on concern that a cheap artificial intelligence-model from Chinese start-up DeepSeek could make valuations of the technology that has powered the bull market tough to justify.
“AI is here to stay, and if anything, DeepSeek reinforces that,” Solita Marcelli at UBS Global Wealth Management said.
“However, the latest developments do also show that investment approaches that are too concentrated or overly passive can be risky, as value can quickly shift within the AI ecosystem. An active and diversified approach is a better way to gain exposure to AI, in our view.”
The big-tech reporting period that kicks off on Wednesday may prove sobering for bulls.