Global

U.S. Stocks Plunge as Trump Tariff Fears Spread Among Businesses and Consumers U.S. stock markets experienced a sharp decline on February 21, 2025, with investors grappling with growing concerns about the economic impact of President Donald Trump's trade and tariff policies. The S&P 500 dropped by 1.7%, while the Nasdaq Composite fell 2.2%, marking its most significant decline in two months. The sell-off came as investors worried about the potential consequences of new tariffs, which were expected to affect various industries, including manufacturing, automotive, and technology. Market Reaction to Tariff Announcements The sharp downturn in U.S. stocks was largely driven by fears surrounding President Trump’s recent announcements about new tariffs. These include potential levies on car imports and other critical industries such as semiconductors, pharmaceuticals, and technology components. The growing uncertainty surrounding trade relations, coupled with fears of escalating tari...

  US Export Controls May Have Unintentionally Boosted DeepSeek's AI Growth, Raising Concerns in Washington Tight US export restrictions on advanced chips appear to have inadvertently fueled the rise of Chinese start-up DeepSeek, intensifying fears in Washington about America’s ability to maintain its lead in the global AI race. Based in Hangzhou, DeepSeek has surprised investors and industry experts with its R1 chatbot, which rivals American counterparts at a significantly lower cost. This achievement comes despite stringent US rules limiting China’s access to high-end chips vital for training large AI models. DeepSeek’s founder, Liang Wenfeng, acknowledged that the “embargo on advanced chips” posed major challenges. However, while these restrictions were designed to safeguard US technological dominance, experts believe they may have encouraged DeepSeek to find creative workarounds. The company utilized H800 chips—less powerful but legal for export to China until late 2023—to devel...