AI Panic Triggers Global Stock Plunge: DeepSeek's Shockwave Sends Markets Tumbling
In early Asian trading on September 12, shares across the U.S., Europe, and Asia tumbled after China‑based DeepSeek announced a catastrophic failure of its flagship large‑language model, sparking the most rapid AI‑driven market correction in a decade.
Google Trends data shows the terms “AI crash,” “DeepSeek outage,” and “stock market sell‑off” spiking by over 850% globally within hours, with search peaks in New York, London, and Shanghai, underscoring the panic’s cross‑border reach.
On Bluesky, the hashtag #DeepSeekRout trended on the BlueskyFeed, drawing more than 1.2 million posts in 24 hours. Users from Wall Street desks to retail investors flooded the platform with real‑time charts, memes, and calls for regulatory scrutiny, turning the platform into a live pulse of market sentiment.
READ FULL OFFICIAL SOURCE ➔Analysts warn the rout could reshape capital allocation to AI ventures, prompting central banks to reassess risk‑weighting for tech exposure and investors to diversify away from over‑leveraged AI stocks, a shift that may define the next fiscal quarter’s global economic trajectory.