Good Monday morning. Welcome to another hour of squawk on the street. I'm Carl Kintania with Leslie Picker and David Faber here at post-9 of the New York Stock Exchange. Sarah Eisen has the morning off. This deep seek news has definitely thrown the AI trade into some flux, but we are off the, certainly the worst of the pre-market levels. And we do have other areas of the market, like small caps, starting to show some green arrows. We'll talk all about it. And we're 30 minutes into the trading session here.

Some big movers we are watching in this market selloff.

Nvidia poster child of the AI rally, really ticking it on the chin this morning on reports

that Deepseek, a China-based open-source AI model, was able to use less advanced chips to create AI tools that compete with the proprietary models of U.S. tech giants,

raising questions about the moat for NVIDIA and companies like AI.

Invidia shares currently down more than 11%.

The entire semiconductor industry also under pressure on the news, Broadcom Marvell down double digits.

And it's not just the semis,

all of the Mag 7, with the exception of Apple in the red this morning, ahead of key earnings this

week, much more on the Deepseek AI fallout and this market sell-off straight ahead.

We're going to kick off a busy week of economic data with new home sales. Let's get to Rick Santelli. Hey, Rick. Yes, these are December new home sales, Carl.

Expecting the numbers somewhere in the 675,000 camp. Those are easily adjusted annualized units.

We come in better. A whisker under 700,000, 698,000. That's the best rate since September of last year.

And a positive revision in the rearview mirror, 664,000, become 674,000. This was largely expected a rebound,

but do remember, the month of December was not friendly for 30-year

mortgage rates or interest rates in general if you were looking to finance a home. December

saw interest rates climb in the 10-year, and they basically, in the 30-year mortgage-fixed

arena, saw mortgages above 7% pretty much for the entire month.

For more, a dig deeper into this number.

Let's head east to Diana Oleg.

Diana?

Rick, it's really interesting that we got a beat on this number.

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