💻 DeepSeek AI and Tariff Threats Weigh on Tech Stocks; Nvidia, Microsoft, and Oracle Hit Hard | Tech Sector Insights
VGT is currently experiencing a decline. This downturn is driven by significant drops in major technology stocks, notably due to concerns over competition from China's DeepSeek AI model, which reportedly offers superior performance at lower costs compared to U.S. firms like Nvidia and OpenAI.
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Monday, January 27
VGT [-4.2%]
Vanguard Information Technology ETF (VGT)
The Vanguard Information Technology ETF (VGT) is currently experiencing a daily return decline of approximately 4.2%. This downturn is driven by significant drops in major technology stocks, notably due to concerns over competition from China's DeepSeek AI model, which reportedly offers superior performance at lower costs compared to U.S. firms like Nvidia and OpenAI. Key holdings in VGT reflect this trend, with NVIDIA's stock falling sharply amid competitive pressures, while Microsoft also reported a notable decrease linked to the introduction of a free AI assistant by DeepSeek. Additionally, President Trump's recent tariff threats against Colombia have exacerbated uncertainty in global markets, further weighing on technology stock valuations. The S&P 500 Index has similarly declined by 2%, indicating a broader market sentiment that may be influencing VGT's performance.