Chinese AI Startup Fuels Tech Rout as US Equity Futures Drop Pre-Bell

MT Newswires Live01-27

US equity futures were lower pre-bell Monday, with futures of technology-heavy Nasdaq Composite leading the losses amid concerns surrounding the artificial intelligence sector.

The Dow Jones Industrial Average futures fell 0.7%, S&P 500 futures dropped 2.2%, and Nasdaq futures were down 3.8%.

Nvidia (NVDA) and other artificial intelligence players were sharply lower after the rapid rise of Chinese artificial intelligence startup DeepSeek, which launched an open-source artificial intelligence model that can potentially run on less-advanced chips.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 0.8% at $76.97 per barrel and US West Texas Intermediate 0.7% lower at $74.14 per barrel.

New home sales, scheduled for release at 10 am ET, are expected to have risen to a 669,000 annual rate in December from 664,000 in the preceding month.

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