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DeepSeek Panic: Here's Why Tech Stocks Are Getting Crushed As Nasdaq Paces To Worst Day Of 2025

1. DeepSeek's AI model release triggered a significant U.S. stock market selloff. 2. S&P 500 dropped about 2% and Nasdaq fell 3.5% amid tech losses. 3. Major companies like Microsoft and Nvidia faced sharp declines in stock prices. 4. Investors worry AI investment may be over-hyped due to new competitors. 5. DeepSeek's technology poses a competitive threat to U.S. AI industry leaders.

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FAQ

Why Bearish?

The market reaction indicates loss of confidence in major tech stocks, reminiscent of the dot-com bubble.

How important is it?

The article discusses emerging competition that could significantly affect major S&P 500 stocks.

Why Short Term?

The immediate selloff suggests short-term fears will stabilize with earnings reports this week.

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