The start of a new week in financial markets begins with sharp discounts on the US100 index in the face of possible changes in the balance of power in the booming artificial intelligence industry. The Nasdaq, as an index that brings together the world's most important technology companies in its structure, is currently losing 3% after Chinese company DeepSeek released public access to its DeepSeek V3 artificial intelligence model.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe DeepSeek company claims to have spent around $6 million to train the new AI model and took several months to do so, a mere fraction of the amount and time that US competitors had to spend to train the current artificial intelligence models of major technology conglomerates (as META's Llama). This information has caused some investors to begin to question the validity of the huge investment to date in the development of AI technology, which, at the same time and despite previous beliefs that Chinese competitors were stagnating in this area, was being developed much more cheaply and, it seems, similarly effectively. Source: DeepSeek
The scale of the declines on the US100 index today is really sizable, down as much as 3%. The range of declines has now allowed the index to break below the 50-day EMA (blue curve on the chart). From a technical point of view, however, the index is still in a long-term uptrend. Source: xStation
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
