AI Fears Send Tech Stocks Reeling as Nasdaq Futures Plummet
US stock futures plummeted on Monday after two leading AI companies called for an industrywide slowdown in artificial intelligence development. The move sparked a sell-off in tech stocks, with the Nasdaq 100 falling 1.5% and chip stocks like Nvidia leading the losses.
The decline followed a lengthy essay by Anthropic CEO Dario Amodei, who argued that AI companies should slow their pace to address safety concerns. OpenAI CEO Sam Altman agreed, stating in a post on X that his company had delayed its stock market debut until 2027. Despite this, Anthropic still plans to list on the Nasdaq later this year.
The sector's woes were exacerbated by rising oil prices, with Brent crude trading near $108 a barrel after Saudi Arabia shut a key pipeline. Market attention is now shifting towards Wednesday's Federal Reserve meeting, where bets on a rate rise have spiked to 86% following Friday's inflation report.