AI Stocks Plunge as Industry Leaders Call for Global Slowdown

Global AI stocks took a hit on Monday as industry leaders called for a slowdown in development to ensure safety. Anthropic CEO Dario Amodei warned of risks, including the possibility of an AI swarm taking over the internet within six to 12 months.

Nvidia, which has seen its profits soar due to its role in training AI models, led the decline with a 3.5% drop. Other major players like Softbank Group and OpenAI's Sam Altman also saw significant losses after supporting Amodei's call for a slowdown.

The slump was not limited to AI stocks, as oil prices jumped again, pushing the 10-year Treasury yield to 5% for the first time since 2023. The increase in oil prices has contributed to higher inflation, which is expected to lead to a Federal Reserve interest rate hike on Wednesday.