Dow Tumbles Amid AI Development Concerns and Rising Oil Prices
The Dow Jones Industrial Average declined by 153 points on Monday as a selloff in AI and semiconductor stocks added pressure to US equities. The decline followed calls from senior artificial intelligence executives for a slower pace of AI development amid growing safety concerns.
Nvidia shares fell about 3.8% in trading, while Amazon declined around 1.32%. Other major chipmakers also came under pressure, with Broadcom, AMD, Intel and Marvell Technology falling between 4% and 8.8%.
The latest pressure on AI stocks followed comments from Anthropic CEO Dario Amodei, who called for AI companies to slow the pace at which they advance the capabilities of their most powerful models. OpenAI CEO Sam Altman and xAI chief Elon Musk backed the proposal.
Rising oil prices added another source of uncertainty for investors, with Brent crude futures climbing more than 4% to $109 a barrel, while West Texas Intermediate crude futures gained about 3% to $103.98.