US Stocks Tumble Amid AI Slowdown and Oil Market Volatility
Major US stock indexes are set to open lower on Monday due to a decline in tech stocks, particularly those related to artificial intelligence. The slide comes after several prominent AI industry leaders called for a slowdown in development to address safety concerns.
The tech-heavy Nasdaq futures fell by 1.6%, while S&P 500 and Dow Jones Industrial Average futures retreated by 0.6% and 0.4%, respectively. Chip stocks, including Nvidia, Marvell, Advanced Micro Devices, and Intel, are also down as a result of the AI slowdown.
On the other hand, shares of cybersecurity providers such as Palo Alto Networks and CrowdStrike rose after their weekend calls for caution on AI development.
The oil market continues to be volatile, with Brent crude futures reaching over $108 per barrel due to ongoing tensions in the Middle East. The recent closure of a key Saudi Arabian pipeline and a postponed meeting between Iran and its Gulf neighbors have contributed to the surge.
This week's economic calendar is dominated by the Federal Reserve's decision on interest rates, scheduled for Wednesday afternoon. Investors expect a rate hike as inflation remains above the central bank's target.