AI Safety Concerns Weigh on US Stocks as Oil Prices Soar
US stock futures took a hit on Monday as concerns over artificial intelligence safety grow louder. The S&P 500, Dow Jones Industrial Average, and Nasdaq all saw declines, with the S&P 500 dropping 0.7%.
The biggest AI companies remain private enterprises, but their stocks are being affected by growing worries over AI's impact. Shares of Nvidia slipped 2.7%, while Intel's stock dropped nearly 6%. Other shares declining include those for Broadcom, Texas Instruments, and Advanced Micro Devices.
President Donald Trump downplayed the need to check AI development, saying it could cede America's edge over China in a global competition. However, OpenAI CEO Sam Altman supported a slowdown in AI development to ensure safety, confirming that his company would not make its initial public stock offering this year as it focuses on safety.
Oil prices rose more than 2% as worries grow over global oil supplies after Saudi Arabia shut down a major oil pipeline due to attacks by Iran-backed Houthi rebels. Brent crude rose 2.6% to $107.37 per barrel, while benchmark US crude was up 2.3% to $102.39 per barrel.