Stocks fell on Monday as investors monitored a major shakeup in the pipeline for artificial intelligence initial public offerings amid growing safety concerns as well as the latest moves in Treasury yields and oil.
The Dow Jones Industrials faltered 170.13 points to 52,403.16.
The S&P 500 waned 50.68 points to 7,606.30
The NASDAQ Composite stumbled 263.14 points, or 1%, to 26,069.89.
Global AI-related stocks fell after Anthropic CEO Dario Amodei called for a slowdown of the development of AI capabilities, with other major tech figures backing the proposal.
Amodei said in an essay on Saturday that AI companies need to slow the pace of innovation for their best models due to safety risks, and told CBS News on Sunday that the “toughest dilemma” about such a proposal is what would happen if China did not do the same.
Meanwhile, OpenAI CEO Sam Altman said in a Saturday interview an IPO this year would be “ill-advised.”
AI darling Nvidia fell 3%, as did Broadcom. Advanced Micro Devices and Intel each declined 5%, while Marvell Technology shed 6%.
Elsewhere, oil prices rose after Saudi Arabia shuttered a key pipeline that bypasses the Strait of Hormuz. West Texas Intermediate crude futures were up 3% at above $103 per barrel, while Brent crude futures gained 4% to above $108.
Prices for the 10-year Treasury flopped Monday, raising yields to 5% from Friday day’s 4.94%. Treasury prices and yields move in opposite directions.
Oil prices re-strengthened $4.20 to $104.25 U.S. a barrel.
Gold prices tumbled $94.70 to $4,314.20 U.S. an ounce.
