"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.

Monday’s trillion-dollar stock-market wipeout will be remembered as an opportunity to scoop up shares of some of the most valuable U.S. companies at a discount, according to a team of equity strategists at Goldman Sachs Group.

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.

Global markets are concentrated in three major ways: U.S. stocks have come to dominate global equity indices, technology as a sector is dominating benchmarks, and there is also a portfolio trend towards large positions in a few single stocks. All this makes the rally more fragile.

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.

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.