AI Fears Spark Selloff in US Stocks as Middle East Tensions Soar
US stock futures declined on Monday as concerns over artificial intelligence (AI) safety grew louder, while oil and gas prices surged due to increased tensions in the Middle East.
The S&P 500 futures fell by 0.7%, with Dow Jones Industrial Average futures down by 0.2% and Nasdaq futures plummeting 1.6%. The calls for a slowdown in AI development were echoed by OpenAI CEO Sam Altman, who stated that the industry should prioritize safety over rapid progress.
Altman also confirmed that OpenAI would not go public this year as it focuses on ensuring the safe development of AI technology. However, President Donald Trump downplayed the need for his administration to check the development of AI, citing concerns about ceding America's edge in global competition and the potential benefits of winning the technological race.
The capture of strategic islands by Iran-backed Houthi rebels in Saudi Arabia has led to increased worries over global oil supplies. Brent crude rose 2.6% to $107.37 per barrel, while US benchmark crude was up 2.3% to $102.39 per barrel. Gasoline prices continued their upward trend, reaching an average of $4.32 per gallon.