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Last week, people saw the 7% spike in the S&P 500 and called it a relief rally. Markets breathed. Volatility cooled off for a moment. But what actually happened wasn’t just a response to Trump’s sudden 90-day tariff pause. It was a pressure release after days
Let’s talk markets. Specifically, let’s talk about what just went down (literally) in the Nasdaq this week. If you’ve been paying attention—or maybe even if you haven’t—it’s gotten pretty ugly pretty fast. I even tweeted something about it: Markets take the stairs up
The drop happened fast! If you blinked sometime in February, you might’ve missed that we were at new all-time highs. Now? We're in full correction territory. Just yesterday, the S&P 500 fell more 2%, and now close to 10% in less than a month. Not
Did you know that 56% of Wisconsin’s agricultural exports could be impacted by tariffs from Canada, Mexico, and China? Wisconsin now represents the 11th largest exporter of agricultural products in the U.S., up from 13th in 2023 (WI DATCP). In 2024, Wisconsin’s agricultural exports reached $3.97
So, here’s something no one seems to be making a big deal about: tariffs are rising fast, and they’re dragging the US economy down. You won’t hear much about it in the headlines, but the effects could start to pile up. Higher prices, weaker growth, and more
The Nasdaq-100 futures dropped 3% this morning, one of the steepest declines in years. Nvidia is down 10% after news broke about DeepSeek, a Chinese AI startup that developed a $6 million AI model.
Investors are questioning whether U.S. tech companies’ massive AI spending can compete with cheaper alternatives.
Market Returns This Morning
DeepSeek’s AI model could be the reason why markets are shaking. Here’s how major indices are performing:
- Nasdaq-100: -2.63%
- S&P 500: -1.57%
- Russell 2000: -0.57%
- Dow Jones: -0.22%
What Is DeepSeek?
DeepSeek developed a high-performing, open-source AI model for just $6 million. That’s a fraction of the billions spent by tech giants like Nvidia and Microsoft.
The model reportedly performs on par with the most advanced AI systems. This puts serious concerns about big tech’s expensive spending. If startups like DeepSeek can deliver similar results for far less, it would disrupt the entire industry.
Nvidia Leads the Sell-Off
Nvidia’s stock dropped 11% this morning.. wow. It fell from $142 to $125.70, easily wiping billions off the market.
As the leader in GPUs, critical to train large AI models, Nvidia is especially vulnerable to cheaper competition (like DeepSeek)
Is AI Expensive?
DeepSeek’s success forces us to ask: are AI stocks overvalued?
Investors will be watching earnings reports from Microsoft, Meta, and Tesla; which are all set to report on Wednesday after market close.
Key Takeaways:
- DeepSeek’s $6M AI model is challenging the heavy-spending from U.S. tech companies
- Nvidia dropped 10%, leading a 2.6% decline in the Nasdaq-100, with ripple effects across tech stocks
- Investors are rethinking whether AI valuations can hold up despite cheaper alternatives