Investing

QQQ Crash: Live Updates on Amazon (AMZN), Meta, Apple (AAPL) Following Today’s Selloff 

Will Ashworth

Published: January 27, 2025 11:53 am

Last Updated: January 27, 2025 2:07 pm

Live Updates

DeepSeek Isn’t the Only Reason for a Big Drop in Tech Stocks

2:06 pm

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The markets continue to bounce around in afternoon trading. 

The Invesco QQQ Trust (NASDAQ:QQQ) is down 3.3%, up slightly from the morning low. The DeepSeek news from this morning had a significant effect on the Magnificent Seven with all losing ground except for Apple (NASDAQ:AAPL), up 3.4%, and Meta Platforms (NASDAQ:META), up 0.5%.

Of the five Mag 7 stocks in negative territory, Nvidia (NASDAQ:NVDA) remains the biggest casualty, down over 17%. Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) are also down big in Monday afternoon trading, off 2.7% and 3.5%, respectively.

However, the concerns about slowing AI spending aren’t the only thing hurting markets in Monday trading. 

The Federal Reserve meets for two days this week to discuss interest rates. The general consensus on Wall Street is that the Federal Reserve will not cut interest rates as President Trump would like, raining on investors’ parade.

In late Monday morning trading, tech stocks are getting crushed, with the Invesco QQQ Trust (NASDAQ:QQQ) down 3.1%.

Investors are second-guessing valuations of U.S.-listed tech stocks after the most recent AI model released by Chinese AI startup DeepSeek. The company’s AI model is cheaper than OpenAI and other U.S.-based models, spotlighting the billions being spent by Magnificent Seven. 

The Magnificent Seven are all down in mid-morning trading except for Apple (NASDAQ:AAPL), up 2.9%, and Meta Platforms (NASDAQ:META), up 2.1%. 

As for the indexes, the four major indexes are off in today’s trading, with the Nasdaq Composite down more than 3%. The correction extends beyond the Mag 7. 

Dow Jones Industrial Average: Down 107.91 (-.13%)

S&P 500: Down 114.24 (-1.87%)

Nasdaq Composite: Down 644.89 (-3.25%)

Russell 2000: Down 18.05 (-.76%)

Nvidia Is Bleeding in a Big Way

Nvidia (NASDAQ:NVDA) is the biggest loser of the Mag 7, down over 17%. The world’s most prominent AI company, along with other chip stocks, are getting hammered on fears that spending on AI chips designed by Nvidia and others will slow. 

“The DeepSeek news is clearly likely to put pressure on semiconductor stocks today and perhaps in coming days, till there is more clarity on its potential impact on AI chip demand,” Barron’s reported Jefferies equity sales specialist William Beavington’s comments on the situation. 

Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) are the other two Magnificent Seven stocks losing big in Monday trading, down 2.8% and 1.8%, respectively. Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN) and are either down slightly or up early in today’s trading. 

Not Every Stock Is Getting Hit

Three stocks making big moves higher in Monday morning trading include Asana (NYSE:ASAN), Kingsoft Cloud Holdings (NASDAQ:KC), and Tarsus Pharmaceuticals (NASDAQ:TARS), up 10.1%, 7.3%, and 9.1%, respectively. 

Asana stock continues to benefit from strong Q3 2025 results reported in early December that included a 2-cent adjusted profit, six cents higher than a year earlier. It also expects to grow revenues from its AI Studio product launch.  

Kingsoft Cloud Holdings, the Chinese cloud infrastructure company, continues to gain analyst attention. In December, UBS analyst Wendy Zhan upgraded its stock to Buy from Neutral, with a 200% increase in the firm’s target price, to $12.50.

Tarsus Pharmaceuticals recently got an increased target price from Oppenheimer because of its sales figures for XDEMVY, the biotech’s drug for treating ocular rosacea.