US Market Faces Headwinds from AI Concerns and Rising Oil Prices
The US market is facing headwinds due to concerns over AI development and rising oil prices. The 'AI slowdown theory' suggests that the rapid pace of AI advancements may need to be adjusted for safety reasons, which has sparked debate among industry leaders. Anthropic CEO Dario Amodei called for slowing down AI development, a stance supported by OpenAI CEO Sam Altman and xAI CEO Elon Musk.
However, it remains unclear whether the development pace will actually slow down due to fierce competition with Chinese companies. Meanwhile, oil prices have risen above $108 per barrel, driven by attacks on Saudi Arabia's energy infrastructure. The dual headwinds of revised AI expectations and soaring oil prices are prompting investors to avoid risk.
Some analysts believe that the bull market can be sustained if corporate earnings remain strong, despite rising interest rates weighing on stock valuations. In individual stocks, HPE fell after its rating was downgraded to 'Neutral', while Corning saw selling pressure after signing an agreement to sell up to $2 billion in shares.
On the other hand, Baldwin Insurance rose on news of an acquisition agreement by Michael Dell's family office at $32.50 per share. The options market indicates dominance in put trading, with a cumulative volume of 226,000 contracts and a put-call ratio of 1.26.