Smart Investor: Top Large-Value Funds, the DeepSeek AI Trade Beatdown, and What the Fed’s Hold Means for Borrowers

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This week’s highlights:

• Weekly Market Update: Stocks Slip 0.9% As Tech and Energy Stocks Fall
• 7 Top-Performing Large-Value Funds
• Fed Hits the Pause Button, Awaits Further Data Amid Policy Uncertainty
• DeepSeek AI Coverage Summary: Maintaining Our Fair Values; Pullback Was Healthy
• No Relief in Sight: Why Mortgage Rates and Borrowing Costs Are Stuck Despite Fed Cuts

It was quite a week for the stock market, even as one of the biggest calendar items, the Federal Reserve meeting, contained few surprises. Instead, investors were thrown a curveball out of China by artificial intelligence startup DeepSeek, which claims its R1 model has advanced functionality without the sophisticated and expensive semiconductor chips that have fueled the massive AI trade over the last two years. This rally swept up not just semiconductors stocks and other big tech names, but also utilities stocks, the energy sector, and even HVAC suppliers.

What does this mean for the AI trade? Morningstar’s analysts dug into the impact across industries and sectors. Here’s an overview of our coverage across the market – yes, including those HVAC names - and a closer look at what the DeepSeek development means for technology stocks. And of course, fund investors felt the news as well. Gabe Alpert screened for the funds that took the biggest hit in Monday’s AI selloff.

As for the Fed, there wasn’t much in the way of surprise from Chair Jerome Powell, who was even more cautious than usual. The message was clear: The central bank has hit pause on interest rate cuts and is now in “wait and see” mode. This may not seem like much news, but it matters for consumers looking for relief from high interest rates. Sarah Hansen takes a close look at the implications an on-hold Fed has for mortgage rates and credit cards.

In the background, earnings season is in full swing, with some the stock market’s heavy hitters reporting this past week. Check out what our analysts had to say about Apple, Microsoft, and Tesla. For coverage on a ton more companies, visit our earnings page.

Lastly, while AI-related stocks were hammered on Monday, value stocks were on the rise. It’s timely that our fund screen this week digs into large value stocks. Our list of the top-performing large value names includes offerings from Oakmark, Fidelity, and JPMorgan.

Be sure to visit our Markets page for our latest coverage and live stock market updates, along with our weekly calendar of key upcoming data and events.