The U.S. stock market in New York showed signs of instability, falling across the board due to the shock triggered by the Chinese artificial intelligence (AI) startup DeepSeek.
On the 29th (local time), the Dow Jones Industrial Average closed down 136.83 points (0.31%) at 44,713.52 on the New York Stock Exchange (NYSE). The Standard and Poor's 500 index fell by 28.39 points (0.47%) to 6,039.31, while the Nasdaq Composite Index recorded a drop of 101.26 points (0.51%) to 19,632.32.
On that day, the market was struggling with the aftermath of the DeepSeek shock. Shares of Nvidia, considered a leading player in AI, dropped 16.97% on the 27th, rebounded by 8.93% the previous day, and then fell again by 4.10% on the day. Reports emerged that the U.S. government was considering restrictions on Nvidia's AI chip exports to China following the introduction of DeepSeek's AI services, which were interpreted to have negatively affected Nvidia's stock price.
Earlier, Alexander Wang, the Chief Executive Officer (CEO) of the AI data corporation Scale AI, claimed in an interview with CNBC that "DeepSeek has about 50,000 high-performance AI semiconductors H100 from Nvidia, but DeepSeek cannot talk about it due to U.S. export controls."
Meanwhile, the Federal Reserve (Fed) held its first FOMC regular meeting of the year and decided to maintain the current benchmark interest rate at 4.25-4.50% for the next six weeks. Jerome Powell, the Fed chair, noted in a press conference that "the benchmark interest rate has come down to a considerably less restrictive level since September" and said that "the U.S. economy and monetary policy are in really good shape."