The Federal Reserve will probably keep its distance from the DeepSeek saga during its policy meeting this week, but the U.S. central bank has good reason to keep very close tabs on any artificial intelligence wobble on Wall Street.
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U.S. equity indexes dipped and the dollar was firm on Wednesday after the Federal Reserve held interest rates steady and gave little insight into when further reductions in borrowing costs may take place.
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The S&P 500 fell 1.5% on Monday, Jan. 27, as a Chinese startup's cost-efficient and high-performing AI model sent shockwaves through the U.S. tech sector.
Federal Reserve Chair Jerome Powell fields questions from reporters after the central bank announced it would leave rates unchanged.
The Federal Reserve will probably keep its distance from the DeepSeek saga during its policy meeting this week, but the U.S. central bank has good reason to keep very close tabs on any artificial intelligence wobble on Wall Street.
U.S. stock indexes are drifting on Wednesday, ahead of the Federal Reserve’s upcoming decision on interest rates and after two days of disruption driven by doubts about the artificial-intelligence boom.
And one key reason for the quick market bounceback was the quantum leap in generative AI represented by the launch of ChatGPT in late 2022. The AI frenzy since has catapulted the stocks of a narrow group of chipmaker and AI-related megacaps into the stratosphere, dragging wider indexes with them.
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