Escape, escape, the first sound of the bubble bursting

The doomsday scenario currently unfolding in the Twitter world. Economic data, Trump's speech, Fed rate cut expectations... After the emergence of DeepSeek, nothing else matters.
On the first trading day of this week, the financial market encountered a indiscriminate sell-off.
- The U.S. stock market closed much better than it opened, with the Dow Jones Industrial Average up 0.65% (down 0.8% at the open), the S&P 500 down 1.46% (down 2.2% at the open), and the Nasdaq down 3.04% (down 3.6% at the open). Although the Nasdaq's decline is not small, it cannot be described as a "crash".
- The only good news is that the US dollar and US bond yields are both falling, and the scene that investors expected last week is happening this week. Especially the latter, the 10-year US bond yield has fallen below the 4.60% level, approaching 4.5%.
- Gold has also experienced a sharp decline, falling more than $40 from its high. People flocked to U.S. Treasury bonds for safety, but did not flock to gold for safety.
- Bitcoin fell by 3%, ultimately holding the $100,000 level, briefly dipping below it during the session.
- The oil price also followed the global market's decline, falling by about 2%, with US crude oil dropping below $73.
DeepSeek tears off the disguise of AI competition with a disruptive attitude:
1. The recent decline in the US stock market is different from the past. In the past, the big drop at most was like cutting off hands and feet, but this time it is like a dagger directly to the heart - the large US technology stocks. DeepSeek's disruptive technological breakthroughs have made Wall Street doubt the "American AI bubble" - all the money invested in the early stage has gone down the drain. If the answer is yes, the consequences could be unimaginable.
2. Nvidia's stock price plummeted by 17%, with a market value evaporating by $560 billion in a single day, making it the biggest loss in human history. Many traders would rather cash out quickly than wait for the situation to become clearer. The development cost of the DeepSeek platform is not only the tip of the iceberg for ChatGPT, but also an open-source system. It's like giving gold bars for free to gold prospectors, so who would still want to buy gold panning equipment?
3. The reason why the US stock market is able to control the decline is that some people come out to appease the market, saying that DeepSeek will not crush the US panic excessively, and questioning its $5.6 million training cost, and still need and obtain a large number of chips in the future - those who say these words are naturally stakeholders. In addition, the market has increased its bets on the Fed's rate cuts, believing that there will be two full rate cuts this year, compared to only 1.5 times before - the market is turning the impact of DeepSeek into a bargaining chip for monetary policy.
This is not a one-day market, pay attention to the following two points:
One is to see how Wall Street tells stories, whether someone is willing to believe. If someone believes, then everything is fine; if no one believes, then the AI bubble will burst.
Another is to see the next move of large technology companies, whether to expand or reduce spending, and how the market will respond. Microsoft's financial report this Wednesday will provide the first answer. Any major breakthrough from DeepSeek will be a heavy blow to large US technology stocks. Variables often only require one financial reporting season away.