AI Stocks Fall Amid Calls for Slowdown and Rising Oil Prices
The AI industry is facing a slowdown due to concerns about safety and the potential risks of advanced artificial intelligence. Leaders in the field, including Anthropic CEO Dario Amodei and OpenAI's Sam Altman, have called for a deliberate and global slowdown in AI development.
This comes as oil prices continue to rise, with Brent crude reaching $107.46 per barrel after an attack on a Saudi oil pipeline. The 10-year Treasury yield has also breached the 5% level, reaching its highest point since 2023.
Nvidia and Softbank Group were among the hardest hit stocks, with Nvidia falling 2.8% and Softbank losing 10.7% in Tokyo. Meanwhile, President Donald Trump played down the need for his administration to check the development of AI, saying that a strong president is enough to handle the risks.
However, some software companies saw gains, including Intuit, Autodesk, and Adobe, which rose 5.1%, 7.2%, and 4.2% respectively. The market as a whole was down, with the S&P 500 falling 0.3% and the Nasdaq composite slipping 0.4%.