Stock Market Update

[BRIEFING.COM] The stock market opened to selling interest concentrated in tech stocks and AI names after China's DeepSeek AI-model, which appears to be more cost effective than US alternatives, fueled a risk-off vibe. The Nasdaq Composite trades 2.7% lower. 

NVIDIA (NVDA 116.86, -15.98, -11.2%) has weighed down the broader market, along with other chipmakers like Broadcom (AVGO 215.91, -28.79, -11.7%). The PHLX Semiconductor Index (SOX) trades 6.3% lower. 

This price action has also clipped the S&P 500 information technology sector, which trades 4.5% lower. 

Defensive-oriented areas of the market have benefitted from the risk-off trade. The consumer staples (+1.1%) and health care (+1.1%) sectors are more than 1.0% higher.

The activity in Treasuries has also been impacted by the shift in sentiment, reflecting a flight to safety. The 10-yr yield is down is 11 basis points lower at 4.52%.

New home sales totaled 698,000 in December (Briefing.com consensus 680,000) following a total of 674,000 in November (revised from 664,000).