US Stocks Plummet Amid AI Concerns and Soaring Oil Prices
The US stock market started the week under pressure as investors faced a challenging mix of weaker technology shares, surging crude prices, and rising Treasury yields. The S&P 500 fell 0.80% to 7,595.97, while the Dow Jones declined 281.63 points or 0.54%, to 52,291.66.
The decline was particularly sharp for AI and semiconductor stocks amid growing concerns about the speed of artificial intelligence development. Nvidia, a leading company in the sector, saw its shares drop by 3.73% to $210.15, while other chip makers like Intel and Micron fell between 5.91% and 8%. This decline reflects investors' fears that advanced AI models may pose risks to the industry's growth.
The price of Brent crude exceeded $109 per barrel, contributing to concerns about inflation and interest rate hikes ahead of the Federal Reserve's September meeting. The US Treasury yield with a 10-year maturity rate reached its peak since October 2023 at 5%. Higher yields can lead to increased borrowing costs for companies, making their stocks less attractive.