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**ISRAEL AND HAMAS AGREE GAZA CEASEFIRE DEAL TO HALT WAR, QATAR SAYS **Israel and Hamas have agreed a ceasefire starting on Sunday to halt the devastating 15-month war in Gaza, Qatar’s Prime Minister says. **Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani made the announcement, saying that the deal will lead to the release of Israeli captives and surging humanitarian aid to Gaza. ****During phase one of the ceasefire deal Palestinians can return home: Biden **Humanitarian assistance in the Gaza Strip will increase : Biden **Israel and Hamas will negotiate the necessary arrangements in phase two : Biden **If negotiations take longer than six weeks, the ceasefire will continue: Biden **Reconstruction plan for Gaza in phase three: Joe Biden **Biden says now in phase three, final remains of hostages will return to their families and a reconstruction plan for Gaza will begin. **He says the road to this deal "has not been easy", and he calls it one of the toughest negotiations he has experienced. **Iran is weaker than it has been in decades, he adds, and says Hezbollah - the Lebanese armed group backed by Iran in Lebanon - is "badly degraded".
Thursday, February 6, 2025, 7:02 PM
Home » Currency markets jittery as traders assess DeepSeek

Currency markets jittery as traders assess DeepSeek

AI leader Nvidia sank 17%, and it erased about $593 billion in stock market value, the largest single-day loss for any firm on Wall Street.

by NWMNewsDesk
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A surprisingly efficient and powerful Chinese AI model has taken the technology industry by storm. It’s called DeepSeek R1, and it’s rattling nerves on Wall Street.

The new AI model was developed by DeepSeek, a startup that was born just a year ago and has somehow managed a breakthrough that famed tech investor Marc Andreessen has called “AI’s Sputnik moment”: R1 can nearly match the capabilities of its far more famous rivals, including OpenAI’s GPT-4, Meta’s Llama and Google’s Gemini — but at a fraction of the cost.

The company said it had spent just $5.6 million powering its base AI model, compared with the hundreds of millions, if not billions of dollars US companies spend on their AI technologies.

The Japanese yen gave up some of the safe-haven-driven gains on Tuesday as investors grappled with the potential implications of a Chinese startup’s free open-source artificial intelligence model. At the same time, fresh tariff threats had the euro on the back foot.

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The new AI model threatens to upend widespread bets that in the past have lifted shares of U.S. technology stocks, especially chipmaker Nvidia, triggering a sell-off in shares in a broad risk-off move.

The dollar was up 0.7% against the yen at 155.70, putting the currency pair back within its recent trading range after the yen strengthened to its strongest level since mid-December at 153.715 on Monday amid the safe-haven bids.

The benchmark S&P 500 lost 1.46% on Monday, dragged down by technology stocks.

AI leader Nvidia sank 17%, and it erased about $593 billion in stock market value, the largest single-day loss for any firm on Wall Street.

The yield on the benchmark 10-year Treasury note provided little respite for the dollar after it dropped to a one-month low of 4.561% on Monday as investors sought safer assets.

The euro fetched $1.0428, down 0.6% ahead of the European Central Bank policy meeting this week that is expected to cut interest rates as U.S. President Donald Trump talked up the threat of tariffs.

Trump has flagged possible 25% duties on imports from Canada and Mexico on Feb. 1 and has threatened to hit the EU and China with tariffs as well.

The dollar index, which measures the U.S. currency against six rivals the yen and the euro, rose 0.13% to 107.94, after dropping to its lowest level since mid-December on Monday at 107.68.

Yen rises after BOJ hike; yuan, Antipodean peers get Trump boost

The Federal Reserve’s two-day meeting begins on Tuesday where it’s expected to keep interest rates steady. Investors will look for any hints on whether a rate cut could happen soon if inflation eases closer to the U.S. central bank’s 2% annual target.

Sterling last traded at $1.2441, down 0.4% on the day.

The risk-sensitive Australian and New Zealand dollars extended their losses.

Bitcoin, the world’s best-known cryptocurrency, was little changed at $101,421, well off its record high of 109,071.86 touched last week on hopes Trump will usher in friendlier regulations.

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