"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.

DeepSeek’s breakthrough is “a wake up call” that adds to market concentration risks, Oppenheimer and team say: a reminder that benefits from any revolutionary technology don’t automatically accrue to big spenders at the start of the adoption cycle, and that competition humbles even the biggest companies.

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.

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.