China’s DeepSeek faces growing doubts over tech valuations as surging interest in its low-cost AI model threatens to disrupt markets. U.S. technology shares tumbled, driving a broad flight to safety amid rising yields for government bonds and gains for yen and Swiss francs. The sector has been challenged by cheaper alternatives from rivals like NVIDIA and Broadcom. Europe saw similar declines across tech indices, with bond yields dipping further as investors seek refuge in safe-haven currencies. Oil prices dropped more than 2%, while gold fell slightly below $100,000 an ounce. Cryptocurrencies also suffered losses, with Bitcoin dropping nearly 6% amid market uncertainty.
Source: https://www.reuters.com/markets/global-markets-wrapup-1-2025-01-27