DeepSeek drove stocks lower for most of the day, though the Dow eked out a win
Quickly brushing off inauguration week buzz, Wall Street plummeted today as artificial intelligence (AI) stocks came under fire amid reports that Chinese startup DeepSeek's AI model outperformed OpenAI -- and cost significantly less. Nevertheless, the Dow clawed its way to a triple-digit gain despite Nvidia's (NVDA) steep losses. The S&P 500 and Nasdaq were not as lucky, both suffering their steepest daily drop since Dec. 18.
Continue reading for more on today's market, including:
- 2 stocks seeing post-earnings buzz.
- Call volume pops on GameStop stock.
- Plus, behind NVDA's decline; AI drags three Big Tech stocks; and defense stocks to own in February.
5 Things to Know Today
- A mere two weeks after devastating fires destroyed over 16,000 structures and killed 28 people in Southern California, mudslides are now a risk as rain emerges. (Bloomberg)
- Apple (AAPL) has taken another step in automating AI for its iPhone users. (CNBC)
- More on today's sharp decline for NVDA.
- Big Tech stocks suffered on China's AI success.
- A pair of defense stocks to own in February.
Oil, Gold Finish Lower
Crude settled lower, after U.S. President Donald Trump paused threats of retaliatory Colombian tariffs, though Mexico and Canada still face that risk. The now most-active, March-dated West Texas Intermediate (WTI) crude fell $1.49, or 2%, to settle at $73.17 per barrel on the day.
Gold finished lower, pulling back even further from Friday's near-record territory. The contract for February delivery shed 1.5% to settle at $2,738.40 an ounce.