A year after its R1 release disrupted the AI landscape, DeepSeek has re-entered the race with V4-Pro and V4-Flash after a cooloff period bound by compute constraints from U.S. export controls, hardware-related delays, intensifying domestic competition, and scrutiny over alleged model distillation. The new models show a strong comeback, with V4-Pro reportedly leading open models in reasoning, competing closely with top-tier systems like Gemini 3.1-Pro, GPT-5.4, and Claude Opus 4.5, and outperforming Claude Sonnet 4.5 in agentic tasks. Both models feature a 1 million-token context window, while V4-Flash’s ultra-low pricing reinforces DeepSeek’s tiered strategy by delivering near-frontier-level performance at disruptive cost. DeepSeek is doubling down on long-term ambition toward AGI while reclaiming its position as a serious global contender by framing the launch as the start of a “cost-effective 1M context” era.
EQUITY
Wall Street’s major indexes are heading toward its first weekly loss after 3 strong rally sessions, led by the Magnificent Seven as stalled peace talks overshadowed the chip rally. The Philadelphia Semiconductor Index extended its winning streak to 17 days with no sign of stopping yet while software stocks collapsed on weak IBM and ServiceNow earnings. Not all is grim since Intel jumped 20% in post-market trade after crushing the earnings estimate.
GOLD
Gold is on track for a 3% weekly decline, with the price holding below $4,700 as tensions over the Strait of Hormuz drive energy prices higher and intensify inflation fears. A higher dollar and rising 10-year Treasury yields compounded the pressure that now hinged on a three-week Israel-Lebanon ceasefire for safe-haven assets. Technically, gold has broken below a rising channel, with bearish momentum accelerating, targeting a pullback toward $4,600 per ounce.
OIL
Brent crude burnt past $106 per barrel before gapping down to $100, capping a fourth straight session of gains, although the Strait of Hormuz remained shut and peace talks stalled indefinitely. Iran flaunted its control with commandos storming a cargo ship, while President Trump ordered the Navy to "shoot and kill" any vessels laying mines. With no clear diplomatic breakthrough in sight, prices could climb to new yearly highs if fighting resumes by month's end.
CURRENCY
The dollar index is on track for its first weekly gain in three weeks, while the yen weakened for a fifth straight day to 159.7 per dollar, triggering Japanese finance officials to reiterate their threat of “decisive” intervention should the pair break above its July 2024 high of 161.95. China’s spot yuan edged lower, though the medium-term outlook remains robust due to exports.
