The broader market continues to be under pressure after a new AI model, China’s DeepSeek-R1, continues to raise questions about AI investments.

The S&P 500 broke below its 50-day moving average and support level.

Nvidia (NVDA) is taking it on the chin this afternoon, leading a sell-off across chip stocks.

The CBOE Volatility Index (VIX) is still up over 25%, but moderating from this morning’s highs.

The 10-year Treasury Yield (TNX) is down 8.2 basis points to 4.544%.

Six out of eleven sectors are in the green. Consumer Staples (XLP) and Health Care (XLV) lead the way up. Technology (XLK) is the laggard after the DeepSeek-R1 news.

New Home Sales expanded by 3.6% m/m in December, down from 9.6% m/m growth in November.

Do not panic as both issues do not change the fundamentals of the market.