DeepSeek-R1 greatly impacted technology shares, as the Technology Sector (XLK) received a 4.9% haircut.

While the S&P 500 was down for the session yesterday, it was an awe-inspiring day. Outside of the drubbing in the NASDAQ Composite, there were significantly more advancers than decliners.

Pockets of Strength

Value continues to emerge, and low volume has picked up tremendous speed. On the other hand, growth and momentum took a serious drubbing.

Heat Map

Meta (META) was seen as the “winner” in the DeepSeek-R1 saga, followed by Apple (AAPL) and Amazon (AMZN), while Google (GOOG) is considered the most disadvantaged.

Technology Trillion Dollar Day

Top technology stocks lost $1.469 trillion on the session, with Nvidia (NVDA) leading the way with a $589 billion decline. It was the worst one-day loss in stock value in its history. Nvidia has distinguished itself by having endured eight of history's top eleven most significant market cap loss sessions.

The good news is that it came back every time.

Earnings

There were more earnings today, but the big day is tomorrow after the close when Microsoft (MSFT), Meta (META), and Tesla (TSLA) post results.

Today’s Session

We are seeing some pedestrian bounces in the hardest hit names from yesterday. Despite Wall Street circling the wagons, none of these bounces are convincing.