Nvidia and U.S. technology stocks experienced a decline due to the impact of the Chinese AI application DeepSeek, while the ASX concluded the trading session with a lower performance — as reported.
The domestic stock market was unable to maintain its mid-session gains, ultimately finishing in negative territory. This decline was influenced by a significant downturn in technology stocks on Wall Street, exacerbated by the swift ascent of the Chinese AI startup DeepSeek.
The major American semiconductor company Nvidia has experienced a loss of nearly $1 trillion in market value, with other technology leaders also facing substantial declines in reaction to this development.
Below is a summary of the trading day, accompanied by analysis from our business journalists.
Disclaimer: This blog does not serve as investment advice.
Well, that's it for another day on the markets' blog.
In one of the most dominant performances seen in recent times, the hitherto unknown Chinese AI chatbot DeepSeek was the big winner; post-to-wire, daylight second - you know the drill, fill in superlatives where you like.
From smashing the previous heavyweight champion, chipmaker Nvidia from its pedestal as the world's most valuable company overnight (it starts the next bout tonight around $1 trillion lighter) through to winning praise from perhaps the most unlikely source, US President Donald Trump (and Nvidia as well) it has been an extraordinary day.
Along the way, AI adjunct Australian businesses, particularly in the data centre space - Goodman Group, NEXTDC and the recently floated DiCo REIT (talk about bad timing), were steam-rolled as well.
However, that bruising was reasonably limited - the rest of the ASX stood up pretty well to the DeepSeek's abrupt interruption to conventional investing wisdom.
It wasn't a stellar day, but the ASX 200 ended down just 0.1%.
A strong performance came from Sigma Pharmaceuticals, after posting some impressive half yearly results ahead of its merger with the unlisted Chemist Warehouse.
The banks and iron ore miners played an important supporting role.
Asian markets were generally softer, and the Aussie dollar is still having trouble engaging any other gear than reverse.
Gold was flat and oil gained a bit, in defiance of a US Presidential directive.
Looking ahead, it's fair to say Wall Street is timidly looking for a bit of direction.
With its champ, Nvidia, taking a standing eight count, the S&P 500 futures are pointing to a marginal decline (-01%) and while the Nasdaq looks like staggering up off the canvas with a marginal 0.1% gain.
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