US Stocks Sink Amid AI Slowdown Warnings
NEW YORK, Sept 15 (NNN-Xinhua) -- United States (US) stocks ended lower on Monday, pressured by unexpected calls from AI executives for an industry-wide slowdown in AI development, reported Xinhua.
The Dow Jones Industrial Average fell by 152.09 points, or 0.29 per cent, to 52,421.2. The S&P 500 sank 37 points, or 0.48 per cent, to 7,619.98. The Nasdaq Composite Index shed 146.62 points, or 0.56 per cent, to 26,186.41.
Eight of the 11 primary S&P 500 sectors ended in the red, with technology and industrials leading the laggards by dropping 1.67 per cent and 1.44 per cent, respectively.
Meanwhile, communication services and health led the gainers by adding 2.79 per cent and 1.35 per cent, respectively.
Technology equities came under intense selling pressure after Anthropic CEO Dario Amodei published a lengthy essay over the weekend arguing that developers must temper the pace of model advancement to address emerging safety risks.
Sam Altman, CEO of rival developer OpenAI, publicly endorsed the sentiment, placing the frontier AI leaders at odds with Wall Street expectations that have relied on rapid commercialisation and aggressive capital investment.
The safety debate also clouded the public listing calendar.
Altman confirmed that OpenAI has pushed back its anticipated initial public offering to 2027.
Anthropic, meanwhile, reportedly remains on schedule for an autumn debut on the Nasdaq exchange.
Broader market sentiment was further weighed down by sharp spikes across fixed-income and energy markets.
The 30-year Treasury yield climbed to 5.38 per cent, reflecting elevated inflation concerns ahead of the Federal Reserve’s upcoming policy meeting.
In global commodity markets, crude oil prices extended their upward trajectory after Saudi Arabia shut down a strategic pipeline amid widening geopolitical conflict in West Asia.
Brent crude for November delivery went up US$1.07, or 1.02 per cent, to settle at US$105.68 a barrel on the London ICE Futures Exchange.
The confluence of surging energy costs, bond market turbulence, and last Friday’s elevated US consumer price index report solidified expectations for near-term monetary tightening.
According to financial market pricing, traders are assigning an 88 per cent probability that the Federal Reserve will raise benchmark interest rates on Wednesday, even as Fed Chair Kevin Warsh reiterates his stance against providing explicit forward policy guidance.
--NNN-XINHUA
