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Daily Markets Update: Nasdaq Hits Record as Yields Top 5.3%, TSX Flat, Loonie Near 70¢

  S&P/TSX 35,518.55 +0.04% S&P 500 7,773.99 +0.66% Nasdaq 27,477.31 +1.05% Brent US$100.42 -1.8% USD/CAD 1.4250 Flat US 10-yr 5.315% +3.8 bp Monday, October 5 close, with Asia’s Tuesday session. Wall Street’s tech rally pushed the Nasdaq to a fresh record on Monday even as long-term bond yields kept climbing: the U.S. 10-year Treasury yield settled at 5.315%, a new 52-week high. Canada’s TSX barely moved, with tech gains offsetting a slide in energy and financials, and Cenovus fell after unveiling a C$5.7-billion takeover of Athabasca Oil. Oil dropped nearly 2% as G7 emergency stock releases and rising Middle East exports eased supply fears, and the loonie hovered near 70 U.S. cents, close to its weakest level in about 18 months. Canada: TSX Flat as Tech Offsets Energy Index / Stock Close Change S&P/TSX Composite 35,518.55 +0.04% Shopify (SHOP) — +5.7% Athabasca Oil (ATH) — +13.5% Cenovus Energy (CVE) C$44.86 -3.0% Suncor Energy (SU) — -1.2% The TSX added 15.90 points ...
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Nasdaq Plummets as Nvidia Sinks 17% Amid AI Market Turmoil

                                              

The stock market experienced significant turbulence today, with the Nasdaq Composite Index plunging by 3.07%. This sharp decline was primarily driven by Nvidia's stock, which saw a staggering 17% drop. The sell-off was triggered by growing concerns over the impact of China's DeepSeek AI model on the profitability of leading AI companies.

DeepSeek's AI model, which reportedly uses cheaper chips and less data while delivering comparable performance to top models, has caused investors to reassess their bets on AI-driven growth. This has led to a widespread sell-off in tech stocks, with companies like ASML, Broadcom, and Micron Technology also experiencing significant losses.

In contrast, the  Dow Jones Industrial Average managed to stage a modest comeback, buoyed by increased demand for defensive stocks. Investors flocked to safer assets, such as Johnson & Johnson, United Healthcare, and Procter & Gamble, helping the index to recover some of its earlier losses.

The market's reaction underscores the growing uncertainty surrounding the future of AI investments and the potential disruption posed by innovative and cost-effective alternatives like DeepSeek. As the tech sector grapples with these challenges, investors are closely watching upcoming earnings reports from major companies like Apple, Tesla, Meta, and Microsoft for further insights into the industry's outlook.





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