Summary
Global tech stocks plunged after the launch of DeepSeek, a low-cost AI model by Chinese startup DeepSeek, sparked investor concerns over the dominance and valuation of AI giants like Nvidia.
Nvidia shares fell 17%, wiping $593 billion in market value—the largest single-day loss for any company.
The selloff impacted chipmakers, AI firms, and datacenter companies globally.
Analysts view DeepSeek’s cost-efficient model as intensifying competition, potentially challenging U.S. tech dominance.
Volatility has always been built into investing, including index funds.
If retirement is a long way away, then this is a non event. If retirement is close and your 401k was in a target date fund, you are heavily invested in bonds at this point, precisely to deal with this sort of situation.
If you are close to retirement, and heavily weighed to tech heavy indecies, then this will probably delay your retirement a few years. If you’re already retired and so invested, you may have a problem.