DeepSeek AI Model Drives Bearish Pressure on U.S. Stock Futures

DeepSeek Model Sparks Decline in U.S. Stock Futures

U.S. equity index futures are experiencing a significant decline on Monday, driven by the overwhelming popularity of DeepSeek, an inexpensive Chinese artificial intelligence model. This has triggered a selloff in AI-related stocks, with megacap companies like Nvidia being particularly impacted.

S&P 500 Analysis
The S&P 500 has dropped over 5.00%, primarily due to the release of this cost-efficient AI model in China. The market remains under bearish pressure, particularly as U.S. stocks, including Nvidia, have already experienced substantial losses, with Nvidia alone losing approximately $400 billion in market capitalization amid this development.

As long as the price remains below 6,020, the market is likely to see bearish and volatile activity. A break below 5,969 could signal further declines toward 5,937 and 5,863.


Key Levels:
Pivot Point: 5970
Resistance Levels: 6000, 6020, 6051
Support Levels: 5937, 5890, 5863

Trend Outlook
Bearish with Volatility