Tech selloff deepens as DeepSeek upsets global AI race

Image source: Photo by Tara Winstead - Pexels

Global technology shares sank on Tuesday, as a market rout sparked by the emergence of a low-cost Chinese artificial intelligence model entered its second day, making investors question the sky-high valuation and dominance of AI bellwethers. Reuters reports.

🔄 TechBounce: Apple and Meta Platforms stocks both jumped Monday, bucking the trend of their Magnificent Seven peers and providing some respite for tech investors amid a steep sell-off in AI and related names following the release of Chinese firm DeepSeek's new cost-effective AI model. Yahoo Finance reports.

🤝 MicroTok: U.S. President Donald Trump told reporters on Monday that Microsoft is in talks to acquire TikTok and that he would like to see a bidding war over the app. CNBC reports.

🌐 TechRivalry: Developers at leading U.S. AI firms are praising the DeepSeek AI models that have leapt into prominence while also trying to poke holes in the notion that their multi-billion dollar technology has been bested by a Chinese newcomer's low-cost alternative. Reuters reports.

📉 YieldDip: Treasuries rallied as investors flocked to the safety of US government bonds after equities slumped in a selloff driven by technology shares. Yahoo Finance reports.

📊 StarbucksSlide: Starbucks is set to report its fourth straight quarter of comparable sales decline on Tuesday, in what could be another blow to investors waiting for new chief Brian Niccol's efforts to revive demand at the struggling coffee chain. Reuters reports.

⚖ EUvsGoogle: A record EU antitrust fine of 4.3-billion-euro ($4.5 billion) imposed on Google seven years ago punished the tech giant over its innovation, the Alphabet unit told Europe's top court on Tuesday, as it asked judges to scrap the EU decision. Yahoo Finance reports.

(All pricing and percent gains are based on Early Pre-Market from 4:00 AM to 7:00 AM Eastern Time)
Benzinga reports.

1. $:DXF: Eason Technology
Total gain: +98.7%

2. $:BACK: IMAC Holdings
Total gain: +97.82%

3. $:YIBO: Planet Image International
Total gain: +92.85%

4. $:INHD: Inno Holdings
Total gain: +26.55%

5. $:HEPA: Hepion Pharmaceuticals
Total gain: +24.66%

The closing price of the top three market percent gainers trading near or above $3 on January 27.

*All pricing and percent gains are based on regular market trading hours from 9:30am to 4:00pm Eastern Time

1. $JG: Aurora Mobile
Total gain: +111.9%
The company announced that its leading enterprise AI agent platform, GPTBots.ai, has integrated the innovative DeepSeek R1 large language model. Benzinga reports.

2. $AKRO: Akero Therapeutics
Total gain: +96.95%
The company announced that it has commenced an underwritten public offering of $300.0 million of shares of its common stock. Benzinga reports.

3. $YIBO: Planet Image International
Total gain: +54.88%
The stock appeared to be moving on no notable news.

Time (ET) / Report / Period

8:30 am - Durable-goods orders - December
8:30 am - Durable-goods minus transportation - December
9:00 am - S&P Case-Shiller home price index (20 cities) - November

“Good trading is not about being right, it’s about being profitable.”

― Brett N. Steenbarger

Sourced in:
“The Daily Trading Coach: 101 Lessons for Becoming Your Own Trading
Psychologist”, by Brett N. Steenbarger, published in 2009