DeepSeek’s selling reminds investors the greatest income story to hold the stock market
The rapid selling on the market on Monday is not only the driving force of the bull market so far, but also reminds investors what they expect in 2025. All of this is related to large technical income.
The new development of Chinese artificial intelligence company Deepseek has stimulated defeat because investors worry that the brewing competition in AI space in NVIDIA (NVDA) and other large technology names have prompted American AI transactions to stop.
NVIDIA stocks fell more than 16 %. At the same time, Microsoft (MSFT), “magnificent seven” members, and Alphabet (GOOGL, Goog) and Tesla (TSLA) were not 2 % or more. Broadcom (AVGO), another large player in AI space, dropped by 17 %.
Ritholtz Wealth Management chief market strategist Callie Cox wrote in a report on Monday: “When the expectations are high, a doubtful title can shot down the market.” “This is exactly what we see today.”
The slowdown in the rapid growth of Big Tech has always been the risk of market strategists who have talked about the market for more than a year. Strategists believe that due to the high points of decades and the valuation of 10 largest stock indexes, strategists believe that the rapid rally of stocks is increasing.
“You have a lot of concentrated attention in a field of the market-this is the theme market of the AI theme-Suddenly, you bring some uncertainty to the market. Keith Lerner, the co -investment officer, told Yahoo Finance.
Unlike other risks, such as high interest rates or high inflation rates, there are no clear stories, why the excellent large -scale technical income growth story crashes. At present, DeepSeek’s new AI model seems to be an obvious reason why investors question whether high returns expect to follow.
“The biggest risk is the risk we don’t talk about.” “Everyone thinks this is tariff and China. And, you know that what we find [DeepSeek] Not on anyone’s Pentau Card. “
According to Goldman Sachs research, in 2024, the huge seven income was better than the rest of the S & P 500 index, which was 30 percentage points. Although the profit margin is expected to slow down in the next year, which will cause some people to demand to expand the stock market revenue, the growth of large -scale technical income will still be the key pillar of the bull market papers.
It is expected that “magnificent seven shares” shares will increase by 21.7 % in the fourth quarter, while the expected income of other 493 technology stocks will increase by 9.7 %. It is expected that the year -on -year growth rate of “magnificent seven people” is expected to slow down in the first quarter, and then accelerate the income of more than 24 % in the third quarter.
