'Real money': Morning Joe urges Trump to 'tread carefully' as market shows 'ominous signs'
A suddenly popular Chinese artificial intelligence model sent U.S. stocks plunging Monday morning, and MSNBC's Joe Scarborough urged president Donald Trump to proceed with caution.
The year-old startup DeepSeek presented a ChatGPT-like AI model called R1 that shows similar abilities to popular models developed by OpenAI, Google and Meta, but at a fraction of the cost to develop and train, and the the tech-heavy Nasdaq plunged by 3.6 percent after the markets opened.
"Right now, it looks like the stock market is going to take a beating," the "Morning Joe" host said. "I've been talking pretty consistently about my concerns about three bubbles – the stock market bubble, led by a possible tech bubble, and then, of course, the fiscal bubble, $36 trillion debt ... and then the third is crypto. I mean, this is this this economy is running hot. You've got earnings that don't match with basic realities. This weekend I saw 'The Big Short' again, and you just sat there going, how could we have ever been so disconnected from – then you're like, oh wait, oh, and so this morning I'm not saying that this is, you know, this is going to be the beginning of something much worse, but this idea that markets go up forever and this idea, this threat coming from China, this idea that everybody has to line up and deal with America or there's nobody else for them to deal with right now. You know, we're finding out it is not a unipolar world, and right now the Nasdaq and these tech stocks are on track to lose $1 trillion today, if these trend lines continue."
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"But, man, like I've said all along, Donald Trump, Republicans in Washington, they need to tread very carefully because right now we've got three bubbles," Scarborough added. "We've got an economy that's running hot and anything can happen."
Chips and energy stocks plunged as investors second-guessed U.S. dominance in the AI race, and co-host Jonathan Lemire said the sell-off was worrying.
"You just saw we just saw the futures board," Lemire said. "A lot of red and a lot of worry here. A trillion dollars – that's real money. This is coming, of course, from news from a Chinese startup named DeepSeek about its own AI technology, cheaper, more effective – that's what they're saying. The market's reacting to Nvidia, who of course, is a leader in that field. It's already down 10 percent this morning. Technology firms across the U.S. [in] pre-market slumps right now because these dives because of this news from overseas. We have yet to hear from president Trump yet. I think it's a matter of time before we do. He, of course, so closely allied with a lot of these tech leaders now. We saw so many of them on the inauguration platform just a week ago, and we know that the this president in particular sort of values his worth based on what the stock market is doing, and he inherited a roaring one."
"It had a very good week last week," Lemire added, "but today, ominous signs here with real questions about the future of AI, not just in terms of the morality but as a business, and whether that can happen here in the U.S. or abroad."
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