Market Wrap / deep impact

The Australian share market started the shortened trading week in a choppy fashion, as investors digested the DeepSeek shock.

The S&P/ASX200 sea-sawed its way to 8399.10 points this Tuesday, down 0.1% from the previous session.

US tech losses reverberated on the ASX, dragging down tech and data centres related stocks. 

Chinese startup DeepSeek claims it took just two months and cost under $6 million to build an AI model using Nvidia's less-advanced H800 chips. 

A note by Citi saying the DeepSeek developments should have limited impacts on near-term demand for data centres did not stop the real-estate and tech sectors plunging into  the red, down 3% and 0.6% respectively.

In the US, Nvidia lost a record $1 trillion. Locally, investors followed this negative sentiment and data centres operator NextDC lost 7.2% while Goodman Group was down 8.2%. 

In the meantime, the energy sector did not escape the impact of DeepSeek’s update, with uranium players suffering from the largest losses. Deep Yellow dived 15.5%.

However, the financial space buoyed the market, with Westpac and NAB gaining over a percent.  

Tonight, investors will dissect data on US home prices and consumer confidence, before the FOMC decision the following day.