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Rise on Wall Street after the sell-off
The trading day on Wall Street opened slightly higher, marking a moment of hope after the heavy sell-off of technology stocks that took place yesterday. Investors, concerned about recent market fluctuations, are now looking for signs of stability. The focus is particularly on Nvidia, which experienced a dramatic drop of 16.86%, closing at 118.575 dollars. However, at the opening of today, the stock attempts a rebound, gaining 1.7%.
This marks the biggest percentage drop since the March 2020 markets and the biggest loss in terms of market capitalization, amounting to nearly 600 billion dollars
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DeepSeek and the challenge to technological supremacy
The concerns that led to the sell-off stemmed from a new artificial intelligence model developed by the Chinese startup DeepSeek. This innovation could represent a serious challenge to the technological supremacy of the United States, thanks to its cost-efficiency. Despite the decline, Nvidia described the development of DeepSeek as an ‘excellent development for AI’, suggesting that the competition could stimulate further innovation in the sector. Analysts are closely monitoring how this new technology will affect the market and the strategies of American technology companies
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Wall Street’s main indices show signs of recovery
In addition to Nvidia, the main Wall Street indices show signs of recovery. The Dow Jones rose by 14.65 points (+0.03%), the S&P 500 rose by 5.33 points (+0.09%) and the Nasdaq grew by 44.65 points (+0.23%). WTI oil at Nymex also registered an increase of 1.44%, reaching 74.22 dollars per barrel. These positive signs could indicate a recovery in investor confidence, despite the uncertainties related to the performance of the global economy and new emerging technologies
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Decreased durable goods orders
In a complex economic environment, it is important to note that in December, orders for durable goods in the United States fell by 2.2%, disappointing growth expectations. Excluding the transportation sector, orders increased by 0.2%. This suggests that while some sectors show signs of recovery, others may face significant challenges. Investors will need to remain vigilant and ready to adapt to an ever-changing economic landscape
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