Bloomberg News reported on Tuesday that Chinese artificial intelligence group DeepSeek is preparing to secure at least 80 billion yuan, equivalent to $12 billion, from a financing round supported by Tencent and CATL. The startup originally targeted 50 billion yuan, but according to people familiar with the matter cited by Bloomberg, demand from investors significantly outstripped expectations. The final amount for the round could potentially increase to 100 billion yuan.
DeepSeek gained prominence in 2025 with the release of its R1 open-source AI model and is viewed as one of China's leading AI laboratories. Previous reports valued the company at approximately $74 billion. Market participants are currently monitoring the startup's intentions regarding a public listing.
In broader market activity, U.S. stock indices advanced on Tuesday. As of 03:09 ET, Dow futures climbed 170 points, or 0.3%, S&P 500 futures rose 12 points, or 0.2%, and Nasdaq 100 futures gained 36 points, or 0.1%. Monday's gains in the main averages were partly driven by falling oil prices, which alleviated some concerns about energy-driven inflation.
Despite this, services sector data indicated that input prices paid by companies in September reached a post-2022 high, sustaining inflationary pressures. Consequently, the benchmark U.S. 10-year Treasury yield reached its highest point in over two decades, capping the rally in equities. Deutsche Bank analysts noted early signs that pressure on French debt was stabilizing, citing clear outperformance in French debt.
Shipping data cited by Reuters showed that Gulf oil exports exceeded pre-war levels for approximately half of September. Kpler data indicated that the seven-day moving average for regional crude exports stood at 18.3 million barrels per day on September 30, with volumes surpassing levels from before the late February start of the Iran war for 14 days during the month. These figures suggest that crude flows are continuing despite persistent threats to tankers and commercial vessels.
Iran has effectively closed the Strait of Hormuz since the war began, disrupting a waterway that previously handled roughly one-fifth of global oil and liquefied natural gas trade. The conflict has also spread to Yemen, where Iran-backed Houthi militants and Saudi-aligned government forces are competing for control of the Bab el-Mandeb Strait. Vital Knowledge analysts described the volume of oil leaving the Middle East as "fairly healthy considering all the turmoil," but warned that transport costs through Hormuz are significantly higher than pre-war levels, keeping end-customer prices elevated. Benchmark Brent crude futures traded down 0.8% at $99.53 a barrel.
Constellation Brands is set to release its quarterly earnings after market close. The producer of Corona and Modelo Especial is projected to report comparable operating profit of $872.3 million on comparable net sales of $2.53 billion, based on Bloomberg consensus estimates. In June, the company reported fiscal first-quarter profit that beat estimates and maintained its fiscal 2027 adjusted profit per share outlook of $11.20 to $11.90.
U.S. trade figures for August are also scheduled for release on Tuesday. In July, the trade deficit expanded by 24.4% to $88.6 billion due to strong import demand, which rose 2.8% to $399.3 billion. Recent months have seen domestic demand supported by resilient consumer spending and a surge in expenditures on artificial intelligence infrastructure.