Are markets overreacting to DeepSeek AI or is Big Tech 'stretched'?

As the sell-off triggered by DeepSeek's newly launched AI model ripples through markets ( ^DJI , ^IXIC , ^GSPC ) on Monday, how should investors be positioning their portfolios to offset concerns of overconcentration in the Big Tech sector and artificial intelligence trade?

Slatestone Wealth chief market strategist Kenny Polcari joins Julie Hyman and Josh Lipton on Market Domination to speak more about the current market narrative ahead of Big Tech earnings this week.

"I'm not a big believer in this whole deep sea story at all," Polcari states," because I find it really interesting that here we are in America, spending billions of dollars. Some of the greatest minds in the world, in the country, putting this AI stuff together... And then we get some guy from China in a startup company that comes out and he does it with lower-quality chips and an OpenAI system that functions better than what we've been designing. It just doesn't make sense."

See more of Kenny Polcari as the host of Yahoo Finance's newest podcast, Trader Talk with Kenny Polcari . Catch the debut episode where Polcari sits down with BullseyeBrief.com Ingenuity Fund portfolio manager Adam Johnson .

To watch more expert insights and analysis on the latest market action, check out more Market Domination here .

This post was written by Luke Carberry Mogan .