Alibaba surged 7% on Thursday after it made one of its AI models public, signaling how the party isn't over for Chinese tech stocks.

The Chinese tech giant unveiled its latest AI reasoning model on Thursday, saying it beats rivals from OpenAI and DeepSeek. The day before another company launched a “general AI agent” called Manus.

The news prompted Alibaba’s Hong Kong-listed shares to close 8% higher on the day and helped boost the Hang Seng’s China Enterprises Index. The release of Alibaba’s new AI model comes a day after the launch of the “general AI agent” Manus by another Chinese company,

U.S. stocks are resuming their slide, led by AI superstars that are feeling painful downside of big expectations.

Anxiety returned to Wall Street with markets poised to give back much of the previous day’s gains, which were spurred by President Donald Trump’s one-month exemption for U.S. automakers on his 25% tariffs for Mexican and Canadian imports.

U.S. stocks are gaining ground as the U.S. softens its position on some of its tariffs against several key trading partners