Crypto News: China’s new ‘DeepSeek moment’

Good morning. China delivers another “DeepSeek moment.” Zohran Mamdani forgoes a pay rise. And airline lounge rules are infuriating high-spending travelers. Listen to the day’s top stories.

— Angela Cullen

Market Snapshot
S&P 500 Futures	7,518.50	-0.8%
Nasdaq 100 Futures	28,796.50	-1.5%
Bloomberg Dollar Spot Index	1,217.44	+0.1%
Market data as of 06:55 AM ET. Data is subject to provider delays.	Your watchlist

A surprise breakthrough from Chinese AI startup Moonshot rumbled through global markets, sending chip stocks reeling, as queasiness returned about the industry’s voracious spending. The company claims its new Kimi K3 model rivals top offerings from OpenAI and Anthropic in a release reminiscent of last year’s “DeepSeek moment.” It came as President Xi Jinping appeared at China’s premier AI summit, underscoring how rapidly the nation’s AI developers are closing the gap with US rivals. Nasdaq futures tumbled.

Xi used the rise of Chinese AI to stake his claim to shaping the technology’s global rules, even as their growing power stirs security alarms. Relations between the US and China will be tested by President Donald Trump’s accusation that China interfered with US elections in 2020, allegations Beijing flung swiftly back. The Trump administration also said it would shorten visa stays for Chinese journalists, raising concerns about a new round of tit-for-tat restrictions.

Tucker Carlson: If JD Vance Were President, We Would Not Be At War

The controversial conservative influencer says the Iran war exposed a Republican Party that no longer represents its voters.

No liftoff. SpaceX aborted the first launch of its Starship rocket since the company’s IPO after some of its engines failed to fire up. It will try again in a few days. The delay is another — albeit minor — setback for a craft central to Elon Musk’s ambitions to put data centers in space, expand the Starlink communications network, and send humans to the moon and Mars. Starship has faced a rocky development path marred by explosive setbacks, malfunctions and delays.

US health officials traced a parasite outbreak to shredded iceberg lettuce served at Taco Bell, triggering a food safety alert across five states. Here’s what to know about the situation. Also triggering health concerns is the wildfire smoke enveloping North America from Ontario to New York City. Air-quality alerts have been issued in some of the biggest US population centers, disrupting public events from baseball games to rock concerts. Trump’s cuts to disaster funding are complicating efforts to grapple with such situations.

Thanks, but no thanks. Mayor Zohran Mamdani will forgo an 18% pay raise that would have increased his annual salary to $305,800. “I haven’t knocked on anyone’s door in New York City and they’ve said their concern is that the mayor makes too little,” he said.

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Deep Dive: The Year of the ‘Gold Bug’

A large consignment of gold in Cape Town in 1939.

Got gold? If not, this may be the right time. The metal has fallen about one-fifth over the past five months, but over the longer term it’s been a winning strategy. Here’s a buyer’s guide.

In a world beset by geopolitical, economic and energy crises, holding bullion has now become part of the “debasement trade.” But how much of your portfolio should it comprise? Ray Dalio says go as high as 15%.
Of course, while gold will go a long way to getting you out of trouble if bad stuff happens, it wouldn’t help much in the first few days. Here’s why you should also have more cash on hand.

The Big Take

Visa crackdowns and a hostile political climate under Donald Trump are pushing international students to give the US a wide berth and explore Europe and other locations instead.

Big Take Podcast

Shopping at a farmers market in San Francisco.

Making Sense of the US Economic Indicators

Opinion

Erling Haaland collects man bags. — Erling Haaland’s man bag collection could trigger a luxury trend.

Luxury-obsessed footballers like Norway’s Erling Haaland have transformed the man bag from derided to desirable, Andrea Felsted writes. While slowing sales overall have hurt designers’ bottom line, marketing more bags to men could help narrow the shortfall.

More Opinions

Catherine Thorbecke

How China Is Taking Control of the Future of AI

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AI Is Failing to Win Over the ‘Have Nots’

A US Arleigh Burke-class guided-missile destroyer

Hal Brands

Trump Won’t Have Any More Easy Foreign-Policy Victories

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Before You Go

Airport lounge crowds and confusing access rules are infuriating high-spending flyers as entry becomes more expensive and restricted, with perks increasingly tied to card type, cabin, status and a hodge-podge of exceptions.

A Few More