Nasdaq Leads US Stocks Lower as AI Development Debate Weighs on Technology Sector: Dow Jones, S&P, Wall Street
US stocks opened lower on Monday, led by declines in technology shares after several artificial intelligence industry executives called for a slowdown in the development of advanced AI models.
At 09:32 ET (13:32 GMT), the S&P 500 was down 0.7% at 7,603.80 points, while the NASDAQ Composite fell 1.6% to 28,902.20. The Dow Jones Industrial Average declined 0.2% to 52,451.40.
The S&P 500 technology sector dropped more than 2% as investors assessed comments from Anthropic CEO Dario Amodei about the pace of AI development.
AI Development Debate Weighs on Technology Shares
In an essay published on Saturday, Amodei called for AI companies to slow the rate of development of advanced models, citing concerns about potential misuse.
“Progress will still seem fast, and we must make wise use of the time we gain,” Amodei wrote.
The comments followed Anthropic’s disclosure last week that its Claude AI models had been used by several actors for activities ranging from weapons development to fraud.
OpenAI CEO Sam Altman and xAI chief Elon Musk also expressed support for slowing the development of advanced AI, prompting investors to assess the possible implications for technology-sector spending on AI infrastructure.
Deutsche Bank analysts said the debate could change the “composition of AI capex rather than its scale,” with a greater proportion of investment potentially directed towards safety, monitoring and governance.
Altman also said OpenAI would not proceed with a potential initial public offering this year because of safety concerns.
Brent Rises Above $108 as Gulf Meeting Is Postponed
Oil prices also rose after a planned meeting between Iran and Gulf states was postponed, reducing expectations of near-term progress on reopening the Strait of Hormuz to maritime traffic.
Oman’s foreign minister, who has been involved in negotiations with Tehran over the strait, said the regional meeting had been delayed “in the interests of consensus.”
Iran’s foreign ministry said the country would work with Oman to arrange another date for the meeting, according to Fars news agency.
Iranian officials had previously indicated that an agreement with Oman concerning the reopening of the Strait of Hormuz would be presented to Gulf Arab states. Before renewed fighting in the Middle East began in late February, roughly one-fifth of global oil and liquefied natural gas supplies passed through the waterway.
Separately, attacks by Iran-backed Houthi militants in Yemen resulted in the closure of a major Saudi Arabian oil pipeline, while attacks on vessels in the Gulf added to supply disruption concerns.
Brent crude futures briefly moved above $108 a barrel on Monday after also recording gains during the previous week.
Markets Await Federal Reserve Decision
Higher energy prices have also contributed to inflation concerns after US consumer and producer inflation readings remained elevated in August.
Investor attention is now turning to the Federal Reserve’s interest rate decision on Wednesday, with traders widely expecting the central bank to raise rates as policymakers assess energy-related inflation pressures.
“Stocks are under assault from two main sources this morning: oil and AI,” analysts at Vital Knowledge said in a note to clients.
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