The benchmark US stock measures were tracking in the red before the opening bell Monday following media reports that Chinese artificial intelligence startup DeepSeek is offering an open-source model at significantly lower costs than its US counterparts.

Standard & Poor's 500 dropped 2.6%, the Nasdaq fell 4.6% and the Dow Jones Industrial Average was off 0.9% in premarket activity. Asian exchanges were mixed to lower while European bourses were trending downwards midday on the continent.

ASML Holding (ASML), Nvidia (NVDA) and other key technology stocks were down sharply pre-bell after Chinese artificial intelligence startup DeepSeek released an open-source AI model. ASML's US-listed stock declined 9.3% while Nvidia slipped 11%.

Shares of Microsoft (MSFT) and Meta Platforms (META) decreased 6.2% and 5.4%, respectively. Advanced Micro Devices (AMD), Intel (INTC), Qualcomm (QCOM), Applied Materials (AMAT), Broadcom (AVGO) and Micron Technology (MU) were also trading lower.

AT&T (T), SoFi Technologies (SOFI), Bank of Hawaii (BOH) and Hope Bancorp (HOPE) report their latest financial results before the bell, among others. Brown & Brown (BRO), Nucor (NUE) and W.R. Berkley (WRB) are among the companies set to post earnings after markets close.

On the economic calendar, the Chicago Fed National Activity Index for December is out at 8:30 am ET, followed by the new home sales report for the same month at 10 am. The Dallas Fed Manufacturing survey for January is due at 10:30 am.

The Federal Reserve is scheduled to announce its decision on interest rates on Wednesday. Traders also await the key personal income and outlays report, which includes the Fed's preferred inflation metric, for December on Friday.

Before the opening bell, bitcoin declined 5.8% to $98,999, West Texas Intermediate crude oil edged down 0.1% to $74.61 a barrel, yields on 10-year Treasuries retreated 12.3 basis points to 4.5% and gold moved 0.2% lower to $2,774 an ounce.