Australian shares to edge lower after tech slide on Wall Street

The news: The Australian sharemarket is set to open slightly in the red after two main indices on Wall Street dropped on fears the emergence of a low-cost Chinese artificial intelligence model would threaten the dominance of current AI leaders such as Nvidia.

The numbers: Updated at 7.25am AEDT:

• ASX futures: down 2 points or 0.0.02% at 8,370 points
• Wall Street: Dow Jones up 0.48%, S&P 500 down 1.78%, Nasdaq down 3.53%
• Europe: FTSE 100 up 0.02%, CAC 40 down 0.27%, DAX down 0.53%
• Spot gold: down 1.12% to USD2,739.57 per ounce
• Oil prices: Brent down 1.9% to USD77.01/barrel, US WTI down 2.08% to USD73.11/bbl
• AUD: up 0.30% at 62.85 US cents
• Bitcoin: down 2.27% to USD100,396.40

The context: The news of China’s DeepSeek prompted an over 3% slide in the tech-heavy Nasdaq, with shares in leading AI chipmaker Nvidia tumbling more than 17%. Chipmaker Broadcom was down 18%, followed by ChatGPT backer Microsoft, down 2.3%, and Google parent Alphabet falling 3.4%. The Philadelphia semiconductor index tumbled more than 10%, on track for its biggest percentage drop since March 2020.

What to watch: NAB releases its business confidence survey for December.