The report comes as tech stocks, led by the Magnificent Seven—think Apple, Microsoft, Google, and their mega-cap friends—take a hit after DeepSeek’s debut.

The equity market's drop, triggered by DeepSeek’s R1 LLM model news, was a correction and not the start of a sustained bear market, he said in a note. Goldman analysts continue to be confident about global economic growth and see U.

The tech-led selloff in US equities at the start of this week was just a blip, given the positive outlook for the economy, according to Goldman Sachs Group Inc. strategists.

"In our view this is a correction and not the start of a sustained bear market," Goldman Sachs said. DeepSeek sparked a $1 trillion market rout on Monday.

As we’ve written numerous times elsewhere, the cause of Monday’s DeepSeek market wobble were fears that good-enough LLMs won’t cost billions to build and run, and that supplying them won’t be a winner-take-all competition.