AI Slump and Oil Price Spike Send US Equities Lower
US equities opened lower on Monday after leaders of three major artificial-intelligence firms called for slowing AI development, sparking concerns about demand for related services and products. The Nasdaq-100 futures pointed down more than 1.7% at the opening bell.
Nvidia (NVDA) shares fell 2.5%, Advanced Micro Devices (AMD) declined over 5%, Intel (INTC) dropped nearly 6%, and Marvell Technology (MRVL) plummeted 7.4%. AI infrastructure stocks, such as Hewlett Packard Enterprise (HPE), also slid more than 7%.
The oil price spike added to the market's woes, with Brent rising up to 3.9% to above $108 a barrel before paring gains, and West Texas Intermediate nearing $104. The S&P 500 index opened at -0.8%, while the small-cap Russell 2000 index slipped -0.6%.