Nvidia’s share price fell by 17%, wiping more than $589bn from the American chipmaker’s market value—the biggest daily decline of a public company. The tech-heavy Nasdaq index dropped by more than 3%. Investors reacted to reports that DeepSeek, a Chinese artificial-intelligence firm, can train models to get similar results to those achieved by American rivals but using fewer chips. Some fear this will cut demand for AI hardware.
The Rwanda-backed M23 rebels in the Democratic Republic of Congo marched into the eastern city of Goma, after assaulting it on Sunday. The Congolese government, which insisted that its troops still controlled the majority of Goma, accused Rwanda of “declaring war” and cut diplomatic ties. Paul Kagame, the president of Rwanda, and Félix Tshisekedi, his Congolese counterpart, agreed to hold talks on Wednesday.
Tesla sued the European Union over anti-subsidy tariffs on Chinese-made electric vehicles it imposed in October. The bloc levied a tariff of 7.8% on some Teslas and imposed tariffs of up to 35.3% on other brands. Tesla, which exports Model 3s from Shanghai to Europe, joins BMW and several Chinese firms, including BYD, Geely and SAIC, in challenging the move.
Palestinians began returning to the north of Gaza after Israel and Hamas reached an agreement securing the release of an Israeli hostage held in the strip. Israel had said it would not allow the displaced Palestinians back until Arbel Yehoud, whom it had expected to be released on Saturday, was freed. She, and five others, are due to be set free by next weekend.
The EU renewed sanctions on Russia for six months after Hungary dropped its veto. The measures, including trade bans and freezing central-bank assets, aim to weaken Moscow’s war finances. Hungary had demanded assurances that Russian gas deliveries via Ukraine would continue. The EU agreed to help the country secure its energy supply.
Pete Hegseth, America’s new defence secretary, said that Donald Trump will sign executive orders eliminating diversity, equity and inclusion initiatives from the army and reinstating troops discharged for refusing coronavirus vaccines. Mr Hegseth also hinted at reinstating a ban on transgender service members; a similar order was introduced during Mr Trump’s first term and reversed by Joe Biden.
An undersea fibre-optic cable between Latvia and Sweden was damaged on Sunday, probably by an “external influence”, said Latvia’s prime minister. Sweden is investigating possible sabotage and has seized a vessel as part of its inquiry. NATO is sending patrol ships to the area. Previous recent damage to cables in the Baltic Sea has been linked to Chinese and Russian ships.
Figure of the day: 92, the number of vessels that navigated Russia’s Northern Sea Route last year, up from 19 in 2016. Read the full story.
American politics matters intensely to the rest of the world. Read The US in brief—a daily update to help you keep on top of the political stories that matter. Sign up here to receive it as a newsletter, each weekday, in your inbox.