The iShares Semiconductor ETF (SOXX) plunged 6.68% in pre-market trading on Monday, leading a broader selloff in US stocks amid growing concerns over the emergence of China's DeepSeek AI model.
Fears that DeepSeek could challenge the dominance of major US technology companies sparked a wave of selling in the tech sector. The Nasdaq futures tumbled 3.8% before the bell, while the technology-heavy Invesco QQQ Trust (QQQ) shed 4% in early trading.
As semiconductor stocks and ETFs are heavily exposed to the technology industry, the sector was hit particularly hard. The SPDR S&P Semiconductor ETF (XSD) fell 4.8%, while SOXX itself dropped 4.5% amid the DeepSeek-driven rout.
