Oil Prices Soar as US Treasury Yields Approach 5%, AI Industry Faces 'Safety Emergency Brake'
US stocks rebounded last Friday, but weekend geopolitical risks pushed market sentiment back into defense. The Dow rose 0.98%, the S&P 500 rose 0.86%, and the Nasdaq rose 0.96%.
Oil prices jumped nearly 3%, with Brent crude reaching around $104 and WTI near $99, while European natural gas rose 3.8%. The preventive closure of Saudi Arabia's East-West oil pipeline after an attack has not yet been restored, leaving its daily transport capacity at about 7 million barrels.
US Treasury yields approached 5%, with the 10-year yield touching 4.992% and the 2-year yield around 4.653%. Rate hike expectations support the dollar, but it's limited by the US debt breaching $40 trillion and annual interest expenses exceeding $1 trillion.
The AI industry is facing a 'safety emergency brake' after Anthropic CEO Dario Amodei published an article calling for slowing down frontier model development. Musk and OpenAI CEO Altman publicly supported it, while Trump downplayed the risk concerns, emphasizing the US must maintain its lead over China in AI.
The market impact is concentrated on sentiment level, with Asian market futures performing weakly on Monday due to re-evaluation of AI capital expenditure expectations.