Wednesday afternoon was already expected to be eventful for the stock market, with the Federal Reserve releasing its decision on interest rates and Chair Jerome Powell holding his regular post-meeting press conference.
Tyler Ellegard, portfolio manager at Gradient Investments, shares his analysis on the market reaction to DeepSeek and what investors should consider as the tech
Those briefings have headier stakes now, thanks to DeepSeek. The US tech behemoths are under increasing scrutiny for their spending on artificial intelligence and the meager returns they’re generating from the technology, as virtually all of Wall Street tries to understand how the Chinese AI upstart managed, seemingly overnight, to catch up at what appears to be a sliver of the cost.
In the last 12 months alone, the group of seven tech giants — which also includes Alphabet Inc., Amazon.com Inc., Apple Inc. and Nvidia Corp. — have added more than $5 trillion in combined value as they rallied 66%. The rest of the US stock market has gained $8 trillion. The tech behemoths account for more than half of the S&P 500 Index’s 24% advance in that period.
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