NVIDIA BOUNCEBACK
Nvidia’s Monday plunge wiped close to US$600 billion from its market capitalization – the largest single-day loss for a public company in stock market history.
The Nvidia sell-off “may have gone too far”, said Kathleen Brooks, research director at XTB, adding that there were doubts over whether DeepSeek’s AI was developed as cheaply as it claims.
“It may be too early to write off Nvidia yet, even though the prospect of a Chinese rival is causing a crisis for the chip maker,” she added.
Gains in US equities last year were driven by a handful of large tech stocks led by Nvidia, and the wider stock market largely avoided Monday’s rout.
“It’s difficult to work out if the worst is now over, or if yesterday’s slump was just another sign that the top is already in for US equities,” said David Morrison, senior analyst at Trade Nation.
Earlier, Tokyo fell as AI-linked companies were pulled lower and new comments by US President Donald Trump rattled analysts.
The dollar rose after Trump said Monday that he wanted universal tariffs “much bigger” than the 2.5 per cent suggested by his newly-confirmed Treasury Secretary Scott Bessent, fanning fresh fears about a trade war.
Trump said he wants high tariffs on imported metals, pharmaceuticals and semiconductors.
Investors will turn their attention to interest-rate decisions this week.
The Federal Reserve’s policy-making committee meets Wednesday and is largely expected to leave rates unchanged, despite Trump’s calls for lower interest rates from the independent US central bank.
A day later, the European Central Bank will hold a press conference after its first meeting of the year, with some analysts expecting a small cut in lending rates.
