January 29, 2025

On January 28, 2025, U.S. stock markets experienced a notable rebound, particularly within the artificial intelligence (AI) sector. This recovery followed a significant sell-off the previous day, which was triggered by the emergence of DeepSeek, a Chinese AI startup introducing a cost-effective AI model.

Key Highlights:

• NVIDIA (NVDA): After a substantial decline on Monday, NVIDIA's stock surged by approximately 8.9%, closing at $128.99.

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• Microsoft (MSFT): The tech giant's shares rose by 2.9%, ending the day at $447.20.

• Alphabet (GOOGL): Alphabet's stock increased by 1.8%, closing at $195.30.

• Meta Platforms (META): The company saw a gain of 2.16%, with shares closing at $674.33.

• Taiwan Semiconductor Manufacturing (TSM): TSM's stock rebounded by 5.23%, closing at $202.40.

The broader market indices also reflected this positive momentum:

• Nasdaq Composite: Advanced by 2%, recovering from the prior day's downturn.

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• S&P 500: Gained approximately 1%, indicating a broad-based recovery.

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Analysts suggest that the initial market reaction to DeepSeek's announcement may have been overstated. The subsequent rebound indicates investor confidence in the resilience and continued growth potential of established AI and technology companies.

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Overall, the day's performance underscores the dynamic nature of the tech sector and the market's capacity to adjust to emerging developments in artificial intelligence.