AI Industry Shaken: Market Turbulence Follows DeepSeek's AI Breakthrough and Trump's Tariff Hikes

Stock market today: Asian shares skid, hit by AI doubts and Trump tariff hikes

BANGKOK (AP) -- Shares retreated Friday in Asia, with benchmarks in Japan, Hong Kong and South Korea falling more than 2% after Wall Street indexes fell sharply on doubts over the frenzy around artificial-intelligence technology. President Donald Trump 's decision to push ahead with 25% tariffs on imports from Mexico and Canada and to double tariffs on Chinese products to 20% also left investors reeling. Tokyo's Nikkei 225 index lost 3.4% to 36,939.89, pulled lower by plunging prices for shares in technology companies. Computer chip test equipment maker Advantest sank 9.4%, Disco Corp., another equipment maker, lost 11.1% and Tokyo Electron shed 5.3%. Hong Kong's Hang Seng index lost 2.3% to 23,175.49, while the Shanghai Composite index lost 0.9% to 3,358.28. On Thursday, the S&P 500 sank 1.6% to 5,861.57 and the Dow Jones Industrial Average dropped 0.4% to 43,239.50. The Nasdaq composite tumbled 2.8% to 18,544.42. The S&P 500 has fallen five out of the past six trading sessions after setting an all-time high last week. Concerns about the U.S. economic outlook have been behind much of the drop, including worries over how tariffs could worsen inflation and mass layoffs of government workers could increase unemployment. Superstar stock Nvidia, one of Wall Street's most influential companies that's been leading the market for years, lost 8.5% after initially rising at the open of trading following a better-than-expected profit report. Better-than-expected earnings reports have become routine for Nvidia, whose chips are powering the surge into artificial-intelligence technology, but this was the company's first since China's DeepSeek shook the entire AI industry by saying it has a large language model that can compete with the world's best without using the most expensive chips. A 1.7% rise for Berkshire Hathaway, the company run by famed investor Warren Buffett, was one of the strongest upward forces on the index. The owner of Geico, BNSF railroad and other businesses has built a hoard of unused cash recently. That could indicate Buffett, who's famous for buying stocks when prices are low, may not see much worth purchasing in a market that critics say looks too expensive. Treasury yields swung following Trump's latest announcement on tariffs. He said "the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled" for imports from Canada and Mexico. He also said he would add an another 10% tariff to current 10% tariffs on Chinese products on that date. Such moves could push up prices for U.S. households when inflation has already proven to be stubborn. Wall Street has been hoping the threats are merely leverage that Trump will use to negotiate with other countries before ultimately inflicting less pain on the economy than feared. But even if that proves to be the case, all the talk on tariffs has already gotten U.S. households to feel more nervous about the economy. That's dangerous because their strong spending has been a main reason the U.S. economy has avoided a recession. Such uncertainty also pressures the Federal Reserve, which has few if any tools to help an economy where growth is slowing and inflation is rising at the same time. For now, at least, the U.S. economy appears to be in solid shape. The government on Thursday left alone its estimate for the U.S. economy's performance during the last three months of 2024, though it raised its estimate for a measure of inflation during the quarter. A separate report said more U.S. workers applied for unemployment benefits last week. While the number is at a three-month high, it's still nowhere close to where it's been in past recessions. In other trading early Friday, U.S. benchmark crude oil lost 32 cents to $70.03 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, handed back 33 cents, to $73.24 per barrel. The U.S. dollar fell to 149.55 Japanese yen from 149.82 yen late Thursday. The euro slipped to $1.0390 from $1.0401. AP Business Writers Stan Choe and Matt Ott contributed.

Stock market today: Asian shares slide after slight gains on Wall Street

BANGKOK (AP) -- Asian shares were mostly lower on Thursday after U.S. stock indexes drifted to a mixed finish, with the S&P 500 closing just an iota higher. In Tokyo, the Nikkei 225 edged 0.2% higher to 38,198.96. Hong Kong's Hang Seng sank 0.8% to 23,618.74, while the Shanghai Composite index shed 0.5% to 3,364.05. Tech shares that had gained earlier in the week were among the heavier sellers. In Australia, the S&P/ASX 500 added 0.3% to 8,268.60, while the Kospi in South Korea dropped 0.9% to 2,618.77. Elsewhere in Asia, Taiwan's dropped 0.8% and the SET in Thailand edged less than 0.1% higher. On Wednesday, U.S. stock indexes drifted to a mixed finish. The S&P 500 inched up by 0.8% to 5,956.06, breaking a four-day losing streak that had knocked the index off its all-time high. The Dow Jones Industrial Average fell 0.4% to 43,433.12, and the Nasdaq composite climbed 0.3% to 19,075.26. The stock market has generally been struggling following some weaker-than-expected reports on the economy, including a couple that showed U.S. households growing pessimistic about inflation and higher tariffs pushed by President Donald Trump. Some of the harshest drops hit Big Tech and other high-growth stocks, whose incredible momentum had earlier seemed unstoppable. Super Micro Computer, one of the stocks that has soared in the frenzy around artificial-intelligence technology, lost nearly a quarter of its value over four days, for example. But it jumped 12.2% Wednesday after filing its annual report for its fiscal year that ended in June. Much of the market's attention remained on Nvidia, the chip company that's become the poster child of the AI rush. It rose 3.7% ahead of its latest profit report, which arrived after trading ended for the day. The company reported a surge in fourth-quarter profit and sales as demand for its specialized Blackwell chips, which power artificial intelligence systems, continued to grow. It was the first earnings report for the company and its CEO, Jensen Huang, since a Chinese upstart, DeepSeek, upended the AI industry by saying it developed a large language model that can compete with big U.S. rivals without having to use the most expensive chips. That called into question all the spending Wall Street assumed would go into not only Nvidia's chips but also the ecosystem that's built around the AI boom, including electricity to power large data centers. Some Big Tech companies have since said they still plan to invest billions of dollars into AI, an encouraging signal for the industry. Later Thursday, the U.S. Commerce Department will issue its third and final estimate of how the U.S. economy performed in the final three months of 2024. The economy still appears to be in solid shape, and growth is continuing, though uncertainty is rising about the future. Another report on Friday will show how the gauge of inflation that the Federal Reserve prefers to use has been behaving. Worries have been rising about whether U.S. shoppers may cut back on their spending, a key driver of growth, given stubbornly high inflation and jitters about outlook. In other dealings early Thursday, U.S. benchmark crude oil rose 19 cents to $68.81 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, was up 22 cents at $72.29 per barrel. The U.S. dollar rose to 149.34 Japanese yen from 149.10 yen. The euro slipped to $1.0475 from $1.0483. AP Business Writers Stan Choe and Matt Ott contributed.

Stock market today: Asian shares slide after slight gains on Wall Street

BANGKOK (AP) -- Asian shares were mostly lower on Thursday after U.S. stock indexes drifted to a mixed finish, with the S&P 500 closing just an iota higher. In Tokyo, the Nikkei 225 edged 0.2% higher to 38,198.96. Hong Kong's Hang Seng sank 0.8% to 23,618.74, while the Shanghai Composite index shed 0.5% to 3,364.05. Tech shares that had gained earlier in the week were among the heavier sellers. In Australia, the S&P/ASX 500 added 0.3% to 8,268.60, while the Kospi in South Korea dropped 0.9% to 2,618.77. Elsewhere in Asia, Taiwan's dropped 0.8% and the SET in Thailand edged less than 0.1% higher. On Wednesday, U.S. stock indexes drifted to a mixed finish. The S&P 500 inched up by 0.8% to 5,956.06, breaking a four-day losing streak that had knocked the index off its all-time high. The Dow Jones Industrial Average fell 0.4% to 43,433.12, and the Nasdaq composite climbed 0.3% to 19,075.26. The stock market has generally been struggling following some weaker-than-expected reports on the economy, including a couple that showed U.S. households growing pessimistic about inflation and higher tariffs pushed by President Donald Trump. Some of the harshest drops hit Big Tech and other high-growth stocks, whose incredible momentum had earlier seemed unstoppable. Super Micro Computer, one of the stocks that has soared in the frenzy around artificial-intelligence technology, lost nearly a quarter of its value over four days, for example. But it jumped 12.2% Wednesday after filing its annual report for its fiscal year that ended in June. Much of the market's attention remained on Nvidia, the chip company that's become the poster child of the AI rush. It rose 3.7% ahead of its latest profit report, which arrived after trading ended for the day. The company reported a surge in fourth-quarter profit and sales as demand for its specialized Blackwell chips, which power artificial intelligence systems, continued to grow. It was the first earnings report for the company and its CEO, Jensen Huang, since a Chinese upstart, DeepSeek, upended the AI industry by saying it developed a large language model that can compete with big U.S. rivals without having to use the most expensive chips. That called into question all the spending Wall Street assumed would go into not only Nvidia's chips but also the ecosystem that's built around the AI boom, including electricity to power large data centers. Some Big Tech companies have since said they still plan to invest billions of dollars into AI, an encouraging signal for the industry. Later Thursday, the U.S. Commerce Department will issue its third and final estimate of how the U.S. economy performed in the final three months of 2024. The economy still appears to be in solid shape, and growth is continuing, though uncertainty is rising about the future. Another report on Friday will show how the gauge of inflation that the Federal Reserve prefers to use has been behaving. Worries have been rising about whether U.S. shoppers may cut back on their spending, a key driver of growth, given stubbornly high inflation and jitters about outlook. In other dealings early Thursday, U.S. benchmark crude oil rose 19 cents to $68.81 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, was up 22 cents at $72.29 per barrel. The U.S. dollar rose to 149.34 Japanese yen from 149.10 yen. The euro slipped to $1.0475 from $1.0483. ___ AP Business Writers Stan Choe and Matt Ott contributed.

Stock Market Today: Asian Shares Slide After Slight Gains on Wall Street

BANGKOK (AP) -- Asian shares were mostly lower on Thursday after U.S. stock indexes drifted to a mixed finish, with the S&P 500 closing just an iota higher. In Tokyo, the Nikkei 225 edged 0.2% higher to 38,198.96. Hong Kong's Hang Seng sank 0.8% to 23,618.74, while the Shanghai Composite index shed 0.5% to 3,364.05. Tech shares that had gained earlier in the week were among the heavier sellers. In Australia, the S&P/ASX 500 added 0.3% to 8,268.60, while the Kospi in South Korea dropped 0.9% to 2,618.77. Elsewhere in Asia, Taiwan's dropped 0.8% and the SET in Thailand edged less than 0.1% higher. On Wednesday, U.S. stock indexes drifted to a mixed finish. The S&P 500 inched up by 0.8% to 5,956.06, breaking a four-day losing streak that had knocked the index off its all-time high. The Dow Jones Industrial Average fell 0.4% to 43,433.12, and the Nasdaq composite climbed 0.3% to 19,075.26. The stock market has generally been struggling following some weaker-than-expected reports on the economy, including a couple that showed U.S. households growing pessimistic about inflation and higher tariffs pushed by President Donald Trump. Some of the harshest drops hit Big Tech and other high-growth stocks, whose incredible momentum had earlier seemed unstoppable. Super Micro Computer, one of the stocks that has soared in the frenzy around artificial-intelligence technology, lost nearly a quarter of its value over four days, for example. But it jumped 12.2% Wednesday after filing its annual report for its fiscal year that ended in June. Much of the market's attention remained on Nvidia, the chip company that's become the poster child of the AI rush. It rose 3.7% ahead of its latest profit report, which arrived after trading ended for the day. The company reported a surge in fourth-quarter profit and sales as demand for its specialized Blackwell chips, which power artificial intelligence systems, continued to grow. It was the first earnings report for the company and its CEO, Jensen Huang, since a Chinese upstart, DeepSeek, upended the AI industry by saying it developed a large language model that can compete with big U.S. rivals without having to use the most expensive chips. That called into question all the spending Wall Street assumed would go into not only Nvidia's chips but also the ecosystem that's built around the AI boom, including electricity to power large data centers. Some Big Tech companies have since said they still plan to invest billions of dollars into AI, an encouraging signal for the industry. Later Thursday, the U.S. Commerce Department will issue its third and final estimate of how the U.S. economy performed in the final three months of 2024. The economy still appears to be in solid shape, and growth is continuing, though uncertainty is rising about the future. Another report on Friday will show how the gauge of inflation that the Federal Reserve prefers to use has been behaving. Worries have been rising about whether U.S. shoppers may cut back on their spending, a key driver of growth, given stubbornly high inflation and jitters about outlook. In other dealings early Thursday, U.S. benchmark crude oil rose 19 cents to $68.81 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, was up 22 cents at $72.29 per barrel. The U.S. dollar rose to 149.34 Japanese yen from 149.10 yen. The euro slipped to $1.0475 from $1.0483. ___ AP Business Writers Stan Choe and Matt Ott contributed. Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Stock market today: World shares are mixed after slight gains on Wall Street

BANGKOK -- World shares were mixed Thursday after U.S. stock indexes drifted to a lackluster finish, with the S&P 500 closing just an iota higher. Germany's DAX lost 0.9% to 22,584.04 and the CAC 40 in Paris slipped 0.3%, to 8,122.00. Britain's FTSE 100 was nearly unchanged at 8,734.36. The future for the S&P 500 was up 0.5% while that for the Dow Jones Industrial Average gained 0.2%. Later Thursday, the U.S. Commerce Department will issue its third and final estimate of how the U.S. economy performed in the final three months of 2024. The economy still appears to be in solid shape, and growth is continuing, though uncertainty is rising about the future. Another report on Friday will show how the gauge of inflation that the Federal Reserve prefers to use has been behaving. Worries have been rising about whether U.S. shoppers may cut back on their spending, a key driver of growth, given stubbornly high inflation and jitters about outlook. In Asian trading, Tokyo's Nikkei 225 added 0.3% to 38,256.17. Hong Kong's Hang Seng lost 0.3% to 23,718.29. Tech shares that had gained earlier in the week were among the heavier sellers. The Shanghai Composite index reversed early losses, closing 0.2% higher at 3,388.06. In Australia, the S&P/ASX 500 climbed 0.3% to 8,268.20, while the Kospi in South Korea dropped 0.7% to 2,621.75. Elsewhere in Asia, Taiwan's dropped 1.5% and the SET in Thailand sank 1.3%. On Wednesday, U.S. stock indexes drifted to a mixed finish. The S&P 500 inched up by 0.1%, breaking a four-day losing streak that had knocked it off its all-time high. The Dow industrials fell 0.4% and the Nasdaq composite climbed 0.3%. The stock market has generally been struggling following some weaker-than-expected reports on the economy, including a couple that showed U.S. households growing pessimistic about inflation and higher tariffs pushed by President Donald Trump. Some of the harshest drops hit Big Tech and other high-growth stocks, whose incredible momentum had earlier seemed unstoppable. Super Micro Computer, one of the stocks that has soared in the frenzy around artificial-intelligence technology, lost nearly a quarter of its value over four days, for example. But it jumped 12.2% Wednesday after filing its annual report for its fiscal year that ended in June. Much of the market's attention remained on Nvidia, the chip company that's become the poster child of the AI rush. It rose 3.7% ahead of its latest profit report, which arrived after trading ended for the day. The company reported a surge in fourth-quarter profit and sales as demand for its specialized Blackwell chips, which power artificial intelligence systems, continued to grow. It was the first earnings report for the company and its CEO, Jensen Huang, since a Chinese upstart, DeepSeek, upended the AI industry by saying it developed a large language model that can compete with big U.S. rivals without having to use the most expensive chips. That called into question all the spending Wall Street assumed would go into not only Nvidia's chips but also the ecosystem that's built around the AI boom, including electricity to power large data centers. Some Big Tech companies have since said they still plan to invest billions of dollars into AI, an encouraging signal for the industry. In other dealings early Thursday, U.S. benchmark crude oil rose 35 cents to $68.97 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, gave up $1.60 to $72.45 per barrel. The U.S. dollar rose to 149.75 Japanese yen from 149.10 yen. The euro slipped to $1.0477 from $1.0483.

Stock market today: Wall Street climbs and heads for its first gain in 5 days

NEW YORK -- U.S. stock indexes are rising Wednesday after a four-day losing streak knocked Wall Street off its all-time high and threw some of its brightest stars into reverse. The S&P 500 was up 0.8% in morning trading. The Nasdaq composite, which was the prior day's biggest loser, jumped 1.2%, while the Dow Jones Industrial Average was up 188 points, or 0.4%, as of 10:20 a.m. Eastern time. The stock market had been struggling following some weaker-than-expected reports on the economy, including a couple that showed U.S. households are getting more pessimistic about inflation and tariffs pushed by President Donald Trump. Some of the harshest drops hit Big Tech and other high-growth stocks, whose incredible momentum had earlier seemed unstoppable. Super Micro Computer, one of the stocks that's soared in the frenzy around artificial-intelligence technology, lost nearly a quarter of its value over four days, for example. But it surged 23% Wednesday after finally filing its annual report for its fiscal year that ended in June. The company, which sells servers used in AI and other computing, had delayed filing its annual report and other required forms after its former accounting firm raised concerns about some of its financial reporting and governance. Super Micro then had to get extensions from Nasdaq to file the financial reports as it conducted a review and hired another public accounting firm. General Motors revved up by 6.9% after the automaker announced a program to buy back up to $6 billion of its stock. It also will send more cash to its shareholders by increasing its dividend. Much of market's attention remained on Nvidia, the chip company that's become the poster child of the AI rush. It rose 3.4% ahead of its latest profit report, which is due after trading ends for the day. It will be the first earnings report for the company and its CEO, Jensen Huang, since a Chinese upstart, DeepSeek, upended the AI industry by saying it developed a large language model that can compete with big U.S. rivals without having to use the most expensive chips. That called into question all the spending Wall Street had assumed would go into not only Nvidia's chips but also the ecosystem that's built around the AI boom, including electricity to power large data centers. Some Big Tech companies have since said they still plan to invest billions of dollars into AI, an encouraging signal for the industry. NRG Energy jumped 10.3% Wednesday after announcing it's joining with GE Vernova and a subsidiary of Kiewit on a venture to generate more electricity to power generative AI data centers. GE Vernova rose 6.5%. NRG also reported results for the latest quarter that topped analysts' expectations. Most of the other companies in the S&P 500 have also been delivering better profits for the end of 2024 than analysts expected. Off-price retailer TJX rose 1.5% after joining the parade. The company behind TJ Maxx and Marshalls also said it plans to increase its dividend 13% and announced a program to buy up to $2.5 billion of its stock. Worries have been rising about whether U.S. shoppers may cut back on their spending given stubbornly high inflation and jitters about the economy's prospects. But TJX CEO Ernie Herrman said his company has benefited from its off-price model and sees many opportunities to grow over the long term. In the bond market, Treasury yields held steadier after falling sharply in recent days on worries about the U.S. economy. The yield on the 10-year Treasury edged up to 4.31% from 4.30% late Tuesday. It had been nearing 4.80% just last month. On Thursday, the U.S. Commerce Department will issue its third and final estimate of how the U.S. economy performed in the fourth quarter of 2024. The economy still appears to be in solid shape, and growth is continuing at the moment. In stock markets abroad, indexes rose across much of Europe and Asia. France's CAC 40 climbed 1.1%, and Hong Kong's Hang Seng jumped 3.3%. Tokyo's Nikkei 225 index was an outlier and slipped 0.2%. Big Japanese trading companies slipped following gains driven by billionaire Warren Buffett's disclosure in his annual letter to shareholders that he increased Berkshire Hathaway's investments in those companies. ___ AP Business Writers Matt Ott and Elaine Kurtenbach contributed.