US Stock Market LIVE: Trump’s Dispute with Columbia Sparks Bearish Sentiment Among Traders.
Nasdaq futures lost 5%, on concern that a cheaper artificial intelligence model from China threatens the dominance of US technology.
The US stock market is bracing for a significant downturn as traders anticipate a challenging session for Nasdaq on Monday. This comes after a sharp decline in pre-market trading, driven by concerns over rising competition from China in the artificial intelligence (AI) sector. Key stocks, including Nvidia, have taken a substantial hit, with Nvidia Corp. plunging 12% in pre-market trading. If this drop holds, it would mark the largest market capitalization loss for Nvidia in its history. Nasdaq futures fell by 5%, reflecting widespread apprehension about the potential impact of cheaper AI models from China, which could undermine the dominance of US technology firms. According to Bloomberg, the trading volume of Nasdaq 100 futures was nearly four times higher than the 30-day average, signaling heightened volatility. Meanwhile, S&P 500 futures dropped by 3%, and Bitcoin slid below the $100,000 mark, further contributing to the bearish sentiment. This market movement underscores growing global competition in tech innovation and its ripple effects on US equities.