U.S. Tech Stocks Drop as Nvidia Leads Amid Chinese AI Rise: Major U.S. tech stocks declined on Friday, led by Nvidia,
after the company’s CEO’s remarks about the emerging Chinese company Deep Seek sparked investor interest.
He emphasized that the company enhances the AI market rather than threatens it.
Contents:
Trump Urges Musk to Speed Up Reforms
U.S. Tech Stocks Drop as Nvidia Leads Amid Chinese AI Rise
Major U.S. tech stocks faced losses on Friday, with Nvidia leading the decline.
This came after CEO Jensen Huang commented on the Chinese startup Deep Seek,
attracting investor attention. He stated that the company’s innovations
increase demand for AI hardware rather than disrupt the market.
The “Magnificent Seven” ETF (MAGS) dropped 2% to $53.91.
Nvidia shares fell 2.45% to $136.67, yet the company maintained its position
as the second-largest company in the world by market value, standing at $3.369 trillion.
In an interview on Thursday, Huang noted that he disagrees with the initial negative
investor reaction to Deep Seek’s rise and believes it will ultimately benefit the AI industry.
Regarding other major tech stocks:
Trump Urges Musk to Speed Up Reforms to Reduce Government Spending
On Saturday, U.S. President Donald Trump emphasized his desire for Elon Musk,
his billionaire advisor, to take bolder actions in implementing his reform plan to reduce federal government expenses.
In a post on Truth Social, Trump stated:
“Elon is doing a great job, but I’d like to see him act even more boldly… Remember, we have a country to save.”
Earlier, Trump appointed Musk as head of the Department of Government Efficiency (DGE),
a newly established entity responsible for reducing public spending across federal agencies.
This initiative has already led to significant layoffs of federal employees recently.
In the latest workforce reduction, the U.S. Department of Defense announced
on Friday that it would cut its civilian workforce by at least 5% starting next week.
Additionally, the Trump administration has begun dismissing more federal employees
who were in probationary status as part of a comprehensive financial reform plan.
In a legal development, a judge on Thursday rejected a lawsuit filed
by federal employee unions seeking to temporarily halt mass layoffs.
This ruling grants the Trump administration and Musk more flexibility to restructure their government plans.
Despite the Department of Government Efficiency’s broad authority,
Musk’s spending cuts initiative has faced intense opposition and legal challenges,
sparking widespread debate over the impact of these policies on jobs and government services.
U.S. Tech Stocks Drop as Nvidia Leads Amid Chinese AI Rise