AI Fears Weigh on US Stocks as Oil Prices Surge

US stocks experienced a decline on Monday due to weakness in tech shares, particularly those involved in artificial intelligence (AI) development. The S&P 500 index fell by 0.5% as investors reassessed their investments in the AI sector.

The downturn was triggered by comments from leading AI executives who urged a slowdown in AI development to better understand its risks. This stance drew a response from President Donald Trump, who dismissed concerns about AI's potential impact on humanity and emphasized the need for the US to stay ahead of China technologically.

Oil prices rose after Saudi Arabia closed a key pipeline, fueling inflation worries that could lead to higher interest rates from the Federal Reserve. However, bond yields moderated somewhat as investors looked for opportunities in a volatile market.