NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Suffers A Sell-Off As NVIDIA Dives 17%

SP500

SP500 suffered a strong sell-off as traders reacted to DeepSeek, an AI model which has overtaken ChatGPT in Apple’s App Store. DeepSeek claims that it spent less than $6 million to train the model that matches the power of top AI models and used Nvidia H800 chips. Traders have rushed to sell AI-related stocks as DeepSeek may present a cheap alternative to expensive AI solutions. The market questions the valuation of AI stocks and worries that big investments in AI could be disrupted by the emergence of cheap models that can work on less expensive chips. Therefore, demand for top-notch chips from companies like NVIDIA will drop and hurt the company’s profit outlook. As a result, NVIDIA is down by 17%.

Currently, SP500 is trying to settle back above the resistance at 6000 – 6010. In case this attempt is successful, it will get to the test of the 50 MA at 6030.

NASDAQ

NASDAQ is under huge pressure due to strong sell-off in tech stocks. Interestingly, NVIDIA is not the worst performer in the NASDAQ index today. Marvell Technology and Broadcom  were down by 18% in today’s trading session amid worries about the impact of DeepSeek.

In case NASDAQ settles back below the 21,000 level, it will move towards the nearest support, which is located in the 20,550 – 20,600 range.

Dow Jones

Dow Jones gained ground as traders rushed out of AI-related stocks. Rising demand for consumer defensive and healthcare stocks provided material support to Dow Jones index today.

Dow Jones has recently managed to move above the resistance at 44,400 – 44,500 and is trying to gain additional momentum. In case this attempt is successful, Dow Jones will head towards the resistance, which is located in the 44,900 – 45,000 range.

For a look at all of today’s economic events, check out our economic calendar.