News

Chip stocks set for recovery after DeepSeek shock; Nvidia drops

Chip stocks in the U.S. and Europe rose on Wednesday for a second straight day, recovering from a punishing selloff triggered by China's low-cost DeepSeek artificial intelligence tool at the start of the week. Shares of AI chip leader Nvidia, however, slipped 2.7% to $125.44 and weighed on the Nasdaq. European tech stocks jumped, partly fuelled by a nearly 8% surge in ASML after the Dutch semiconductor equipment maker reported a surprisingly large rise in new bookings.

Fed entering tough period for measuring money market liquidity

The Federal Reserve, which wraps up its latest monetary policy meeting on Wednesday, is about to enter one of the more challenging periods of managing what most observers believe is the approaching endgame for its balance sheet drawdown. That's because even as the Fed is expected in coming months to get financial sector liquidity down to levels that will allow it to stop rolling off expiring Treasury and mortgage bonds from its balance sheet, it will be hard to try to get a handle on how tight liquidity is. The U.S. government debt ceiling is again an issue and until that's resolved and borrowing can rise, the current cap will affect Treasury bond issuance in a way that will obscure already difficult efforts to gauge money market liquidity.

Exclusive-D.E. Shaw takes stake in bitcoin miner Riot Platforms, sources say

Investment firm D.E. Shaw has built a position in Riot Platforms and may push it to make changes, two sources familiar with the matter said, making it the second activist shareholder to do so at the cryptocurrency mining company. Reuters could not determine the size of D.E. Shaw's stake in Riot. Representatives for Riot and D.E. Shaw, which oversees $70 billion in assets, declined to comment.