Nasdaq Futures Plunge on China AI Challenger
Good morning. US tech futures plunge as a Chinese AI newcomer threatens to shake things up. Donald Trump briefly proposes tariffs on Colombia. And Elon Musk's Department of Government Efficiency is now hiring. Listen to the day's top stories.
Nasdaq 100 futures plunged amid concerns that AI models from Chinese startup DeepSeek may disrupt US tech dominance. It's expected to challenge Silicon Valley valuations, Aletheia Capital said. Tech shares dragged the Nikkei 225 lower.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
8 minutes ago
- CNN
Texas Instruments to invest more than $60 billion to make semiconductors in the US
Texas Instruments will invest more than $60 billion to expand semiconductor manufacturing in the United States, the company announced on Wednesday, as President Donald Trump continues to pressure tech giants like Apple and Samsung to build their products in America. The investment will go towards seven semiconductor fabrication plants across Texas and Utah, resulting in more than 60,000 jobs, the company said in a press release. TI says it's working with the Trump administration to help produce the critical chips that power everything from smartphones to data centers and cars domestically. It's part of the White House's push to keep the United States ahead of China in the technology industry while promoting American manufacturing. TI, which partners with tech and auto giants like Apple, Nvidia and Ford, claims this is the 'largest investment in foundational semiconductor manufacturing in US history.' 'President Trump has made it a priority to increase semiconductor manufacturing in America – including these foundational semiconductors that go into the electronics that people use every day,' US Commerce Secretary Howard Lutnick said in a press release. 'Our partnership with TI will support US chip manufacturing for decades to come.' The announcement marks the latest major planned investment in the United States by an American company as Trump pushes industries like tech to onshore more production. Earlier this month, General Motors said it would invest $4 billion to increase US production. Apple said in February that it would invest $500 billion to expand its US facilities. Oracle, OpenAI and SoftBank announced in January that they would team up to create a new company called Stargate to grow artificial intelligence infrastructure in America. However, some of these tech giants – including Apple and TSMC – were expanding in the United States long before Trump's second administration. Reviving US manufacturing has been a tentpole goal of Trump's presidency. For the first three months of his second term, he went on a tariff blitz, promising to impose levies on nearly every product made abroad. He claimed these efforts would boost jobs in the US and rebalance what he saw as unfair practices by America's trading partners. Trump Mobile, a new venture from the Trump Organization, plans to launch a new smartphone in September that it claims will be 'proudly designed and built' in the United States. But experts have said manufacturing products like iPhones domestically would be a daunting challenge even if the United States had the necessary fabrication plants. That's primarily because America lacks the labor skills and components to produce them. Staying ahead of China in the tech race has been another priority of Trump's presidency, especially after Chinese startup DeepSeek shook Wall Street and Silicon Valley with its high-performing yet supposedly cheap AI model. 'The United States of America is the leader in AI,' Vice President JD Vance said at the Artificial Intelligence Action Summit in Paris in February. 'And our administration plans to keep it that way.'
CNN
9 minutes ago
- CNN
Texas Instruments to invest more than $60 billion to make semiconductors in the US
Texas Instruments will invest more than $60 billion to expand semiconductor manufacturing in the United States, the company announced on Wednesday, as President Donald Trump continues to pressure tech giants like Apple and Samsung to build their products in America. The investment will go towards seven semiconductor fabrication plants across Texas and Utah, resulting in more than 60,000 jobs, the company said in a press release. TI says it's working with the Trump administration to help produce the critical chips that power everything from smartphones to data centers and cars domestically. It's part of the White House's push to keep the United States ahead of China in the technology industry while promoting American manufacturing. TI, which partners with tech and auto giants like Apple, Nvidia and Ford, claims this is the 'largest investment in foundational semiconductor manufacturing in US history.' 'President Trump has made it a priority to increase semiconductor manufacturing in America – including these foundational semiconductors that go into the electronics that people use every day,' US Commerce Secretary Howard Lutnick said in a press release. 'Our partnership with TI will support US chip manufacturing for decades to come.' The announcement marks the latest major planned investment in the United States by an American company as Trump pushes industries like tech to onshore more production. Earlier this month, General Motors said it would invest $4 billion to increase US production. Apple said in February that it would invest $500 billion to expand its US facilities. Oracle, OpenAI and SoftBank announced in January that they would team up to create a new company called Stargate to grow artificial intelligence infrastructure in America. However, some of these tech giants – including Apple and TSMC – were expanding in the United States long before Trump's second administration. Reviving US manufacturing has been a tentpole goal of Trump's presidency. For the first three months of his second term, he went on a tariff blitz, promising to impose levies on nearly every product made abroad. He claimed these efforts would boost jobs in the US and rebalance what he saw as unfair practices by America's trading partners. Trump Mobile, a new venture from the Trump Organization, plans to launch a new smartphone in September that it claims will be 'proudly designed and built' in the United States. But experts have said manufacturing products like iPhones domestically would be a daunting challenge even if the United States had the necessary fabrication plants. That's primarily because America lacks the labor skills and components to produce them. Staying ahead of China in the tech race has been another priority of Trump's presidency, especially after Chinese startup DeepSeek shook Wall Street and Silicon Valley with its high-performing yet supposedly cheap AI model. 'The United States of America is the leader in AI,' Vice President JD Vance said at the Artificial Intelligence Action Summit in Paris in February. 'And our administration plans to keep it that way.'
Associated Press
18 minutes ago
- Associated Press
Medicare and Social Security go-broke dates pushed up due to rising health care costs, new SSA law
WASHINGTON (AP) — The go-broke dates for Medicare and Social Security 's trust funds have moved up as rising health care costs and new legislation affecting Social Security benefits have contributed to earlier projected depletion dates, according to an annual report released Wednesday. The go-broke date — or the date at which the programs will no longer have enough funds to pay full benefits — was pushed up to 2033 for Medicare's hospital insurance trust fund, according to the new report from the programs' trustees. Last year's report put the go-broke date at 2036. Meanwhile, Social Security's trust funds — which cover old age and disability recipients — will be unable to pay full benefits beginning in 2034, instead of last year's estimate of 2035. After that point, Social Security would only be able to pay 81% of benefits. The trustees say the latest findings show the urgency of needed changes to the programs, which have faced dire financial projections for decades. But making changes to the programs has long been politically unpopular, and lawmakers have repeatedly kicked Social Security and Medicare's troubling math to the next generation. President Donald Trump and other Republicans have vowed not to make any cuts to Medicare or Social Security, even as they seek to shrink the federal government's expenditures. 'Current-law projections indicate that Medicare still faces a substantial financial shortfall that needs to be addressed with further legislation. Such legislation should be enacted sooner rather than later to minimize the impact on beneficiaries, providers, and taxpayers,' the trustees state in the report. About 68 million people are enrolled in Medicare, the federal government's health insurance that covers those 65 and older, as well as people with severe disabilities or illnesses. Wednesday's report shows a worsening situation for the Medicare hospital insurance trust fund compared to last year. But the forecasted go-broke date of 2033 is still later than the dates of 2031, 2028 and 2026 predicted just a few years ago. Once the fund's reserves become depleted, Medicare would be able to cover only 89% of costs for patients' hospital visits, hospice care and nursing home stays or home health care that follow hospital visits. The report said expenses last year for Medicare's hospital insurance trust fund came in higher than expected. Income exceeded expenditures by nearly $29 billion last year for the hospital insurance trust fund, the report stated. Trustees expect that surplus to continue through 2027. Deficits then will follow until the fund becomes depleted in 2033. The report states that the Social Security Social Security Fairness Act, enacted in January, which repealed the Windfall Elimination and Government Pension Offset provisions of the Social Security Act and increased Social Security benefit levels for some workers, had an impact on the depletion date of SSA's trust funds. Social Security benefits were last reformed roughly 40 years ago, when the federal government raised the eligibility age for the program from 65 to 67. The eligibility age has never changed for Medicare, with people eligible for the medical coverage when they turn 65. Nancy Altman, president of Social Security Works, an advocacy group for the popular public benefit program said in a statement that 'there are two options for action: Bringing more money into Social Security, or reducing benefits. Any politician who doesn't support increasing Social Security's revenue is, by default, supporting benefit cuts.' Congressional Budget Office reporting has stated that the biggest drivers of debt rising in relation to GDP are increasing interest costs and spending for Medicare and Social Security. An aging population drives those numbers. Several legislative proposals have been put forward to address Social Security's impending insolvency. __ Associated Press reporters Amanda Seitz and Tom Murphy in Indianapolis contributed to this report.
