3 stock market thoughts amid the DeepSeek sell-off π€
Capitalism can come with violent moves in the markets π₯΅

Monday was a reminder that investing in the stock market is an unpleasant process.
The S&P 500 fell as much as 2.3% in early trading before closing down 1.5%, led by sharp declines in Big Tech names including Nvidia, Broadcom, and Oracle.
The catalyst for the market rout appears to be the emergence of DeepSeek R1, a Chinese artificial intelligence (AI) startup that can do what the buzzy American AI startups can do but at a fraction of the cost. Read more about DeepSeek R1 here.
So a productivity-enhancing technology in high demand has gotten cheaper. Isnβt that a good thing?
For users of this technology: Itβs great news because it means costs are coming down, which is great for profit margins.
For providers of this technology: Itβs bad news because it means prices are coming down, which is bad for profit margins.
For those of us invested in broadly diversified index funds like those tracking the S&P 500, this is unpleasant because mega-cap AI tech providers have been responsible for much of the stock marketβs gains in recent years.
This is a developing story, so thereβll be much more information to come.
For now, here are three initial thoughts for stock market investors.
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