World Street | Nvidia bounces back from AI rout, malicious attack on DeepSeek and more

World Street offers a sneak peek into the world of business and economy.

Shares of Nvidia rebounded 8 percent overnight, partly recovering from the selloff it saw in the session prior. Chinese AI chatbot – DeepSeek's services went down for several users across the globe amid a large-scale malicious attack on its service. World’s largest luxury company LVMH delivered better-than-expected full-year sales. All this and more on the January 29 edition of World Street.

Nvidia shares rebounded on Tuesday, recovering some ground after a record-breaking market value loss on Monday, triggered by the debut of a more affordable, open-source AI model from China.

The stock surged 8.8 percent, with momentum building throughout the session to close near its intraday highs, despite dipping into the red briefly after the market opened.

This recovery followed Monday’s sharp 17 percent decline, which wiped out over $595 billion from Nvidia’s valuation—the largest single-day market cap drop in stock market history.

LVMH, the world’s largest luxury conglomerate, reported stronger-than-expected full-year sales on Tuesday, signaling a potential rebound in the high-end sector.

The owner of iconic brands like Louis Vuitton, Moët & Chandon, and Hennessy recorded revenues of 84.68 billion euros ($88.27 billion) in 2024, surpassing the 84.38 billion euros forecast by LSEG analysts.

The company reported 1 percent organic growth year-over-year, with fourth-quarter sales exceeding expectations after a decline in the previous quarter—the first drop since the pandemic.

US President Donald Trump is set to proceed with implementing tariffs on Mexico and Canada starting February 1, White House spokeswoman Karoline Leavitt confirmed on Tuesday. Leavitt added that Trump is also considering announcing a new tariff on China on the same date.

Upon taking office on January 20, Trump unveiled a series of measures, including a 25 percent tariff on imports from Mexico and Canada, aimed at curbing illegal immigration and the flow of the deadly opioid fentanyl into the US. Additionally, he imposed a 10 percent tariff on Chinese goods, citing Beijing's involvement in the fentanyl trade.

DeepSeek's dedicated status page, which tracks service outages and provides updates, indicates that its Web and API services are experiencing performance issues. According to the company's incident report, the disruption was caused by "large-scale malicious attacks." However, the exact details of the attacks remain undisclosed.

DeepSeek has confirmed that the issue has been identified and a fix has been implemented. The company stated, "We are continuing to monitor for any further issues." Additionally, as part of the resolution, the company has temporarily paused new registrations.