U.S. Tech Stocks Sink in AI Rout Sparked by China’s DeepSeek
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Get 24-7 professional answers and live help and access support by phone, email, and in-platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn more at schwab.com slash trading. Here's your midday brief for Monday, January 27th. I'm Anthony Bansi for The Wall Street Journal.

The Chinese artificial intelligence company DeepSeek has continued to spark a tech stock sell-off in morning trading. The company has trained high-performing artificial intelligence models cheaply, which has pulled the rug out from under global companies riding the AI wave. NVIDIA's stock fell 15%, wiping out more than $400 billion in market value. Meta Platforms, Microsoft, and Alphabet were all down between 1.5% and 3.5%.

The Nasdaq led declines among major U.S. indexes, sinking 2.5% in morning trading. The S&P 500 fell 1.5% after hitting a record last week, and the Dow edged lower.

Shares in Universal Music Group were up 7% in morning trading after the music label said it signed a multi-year agreement for recorded music and music publishing with Spotify. Arabica coffee prices hit a record level of $3.50 on the Intercontinental Exchange. This comes as traders digest the withdrawal of President Trump's threats to impose tariffs and economic sanctions on Colombia. JPMorgan analysts say that the U.S. imports about 30% of its coffee from Colombia.

And in international news, a Rwanda-backed rebel group entered the Congolese city of Goma today, threatening a bloody new chapter in a 30-year conflict set off by the 1994 genocide. The city is a longtime international aid hub and haven for civilians. We'll have more coverage of the day's news on WSJ's What's News podcast. You can add it to your playlist on your smart speaker or listen and subscribe wherever you get your podcasts.

In the modern enterprise, the CIO is more than just a technology leader. On the fourth episode of Tech Fluential, Deloitte's Lou DiLorenzo talks with Tim Buckley, former CEO and chairman at Vanguard, and John Marcante, former CIO at Vanguard and Deloitte's CIO in residence. Together, they define what tech leadership can look like and how that can impact the C-suite and the board. Where technology and influence converge, new opportunities can emerge. That's Tech Fluential.

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