US markets stabilised Tuesday following a wipeout a day earlier when DeepSeek startled markets with its capacity to compete with American tech giants.

In fact, this is a shortsighted view that misses the significant benefits that DeepSeek represents for the U.S. economy and for businesses worldwide. What’s exciting is that the

US markets stabilised Tuesday following a wipeout a day earlier when DeepSeek startled markets with its capacity to compete with American tech giants. Futures for the S&P 500 and the tech-heavy Nasdaq ticked up 0.

Investors aren’t ignoring the upsides of cheaper AI models despite Monday’s DeepSeek-inspired stock-market panic.

The Chinese company DeepSeek sent markets spiraling lower on fears over artificial-intelligence spending, but earnings season should steady the boat. Over the weekend, viral posts indicated that DeepSeek had recreated OpenAI’s technology in the form of its R1 model for only $6 million,

Nasdaq futures fell over by 5%, accompanied by a selloff in U.S. technology stocks, as concerns grew over a more cost-effective artificial intelligence model from China potentially disrupting the dominance of U.

The stock market was sent reeling earlier this week as Chinese AI startup DeepSeek unleashed chaos, triggering a $1 trillion tech selloff that erased $600 billion from Nvidia’s (NVDA) market value in a single day.