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U.S. Futures Slide As Buzz Over Chinese AI Startup DeepSeek Triggers Concerns

1. Major U.S. tech stocks tumbled due to competition from China. 2. DeepSeek's AI model launch raised concerns on U.S. tech leadership. 3. Nvidia, Microsoft, Google, and Meta all experienced significant premarket declines. 4. Chipmakers AMD and Broadcom also faced steep stock drops. 5. The Nasdaq 100 Futures fell 3.1%, signaling broader tech market weakness.

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FAQ

Why Bearish?

The significant selloff in tech stocks indicates waning investor confidence, reminiscent of market reactions to competitive threats.

How important is it?

The competitive challenge from DeepSeek could alter market dynamics in AI, impacting stock valuations moving forward.

Why Short Term?

Immediate investor sentiments are influenced by competition, although markets may recover as they assess deeper trends.

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