S&P 500 and Nasdaq Drop Amid AI Slowdown Fears and Rising Oil Prices
U.S. stocks declined on Monday as concerns over a potential slowdown in artificial intelligence development and rising oil prices weighed on investor sentiment. The S&P 500 fell by 0.7%, the Nasdaq Composite dropped 1.2%, and the Dow Jones Industrial Average lost 0.3%. Anthropic CEO Dario Amodei called for reduced innovation pace due to safety risks, while OpenAI's Sam Altman said an IPO this year would be ill-advised. Chip stocks were hit hard with Nvidia and Broadcom each losing about 3%, while Advanced Micro Devices, Intel, and Marvell Technology fell between 5% and 8%. Oil prices surged after Saudi Arabia shut down its East-West pipeline following drone attacks. Brent crude rose over $108 a barrel, marking the first time U.S. crude traded above $100 since May. Investors are also closely watching the Federal Reserve's upcoming policy meeting with an expected rate hike on Wednesday. The 10-year Treasury yield climbed past 4.98%, reflecting growing inflation concerns.
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Topics: AI development slowdown chip stocks Nasdaq Composite fall oil price surge S&P 500 decline