US Stocks Fall Amid AI Fears and Rising Oil Prices
The US stock market is expected to open on a weak note on Monday, September 14, as concerns over artificial intelligence (AI) development weigh on tech-heavy Nasdaq futures. The S&P 500 and Dow Jones Industrial Average futures fell by 0.8% and 0.3%, respectively. This comes after the S&P 500 snapped its four-day losing streak on Friday with a 0.9% gain.
AI-related stocks, including Nvidia, Intel, and Marvell Technology, took a hit in pre-market trading, dropping by 3%, 6%, and 7%, respectively. US hyperscalers, such as Meta Platforms, Amazon, Alphabet, and Microsoft, also edged down. The losses were attributed to comments from Anthropic's CEO, Dario Amodei, who proposed slowing the development of advanced AI models.
OpenAI CEO Sam Altman backed the proposal, while xAI's Elon Musk expressed support for it as well. Meanwhile, President Donald Trump downplayed growing concerns over AI risks. The US Federal Reserve's policy meeting this week will be closely watched, with inflation concerns stemming from rising oil prices and a potential rate hike.
Oil prices surged on Monday due to Middle East tensions, with Brent crude increasing by 4% to $108.65 per barrel and US West Texas Intermediate crude gaining 3.75% to $103.75 per barrel. The rise in oil prices has added to inflation concerns ahead of the Federal Reserve's policy meeting.