Stocks Slide as AI Slowdown Fears Hit Sentiment: Markets Wrap
(Bloomberg) — Equities fell around the world after leaders of the biggest artificial-intelligence firms proposed slowing the technology’s development, with an advance in oil prices sapping risk sentiment further.
Nasdaq 100 futures sank 1.6%. An exchange-traded fund tracking key chip stocks dropped 5.4% in early trading as traders fretted that efforts to rein in AI could weigh on the boom driving hundreds of billions of dollars in capital spending. OpenAI backer SoftBank Group Corp. slid the most in nearly three months, while South Korea’s Kospi index retreated 3.3%. S&P 500 contracts were down 0.7%.
“There was a bit of irrational exuberance in the middle of the summer that’s been unwound,” said Chris Armstrong at Berenberg. “This is, I think, another leg bringing down expectations.”
Fresh disruptions to crude supplies from the Middle East added to the downbeat mood. Brent jumped 3.9% to top $108 a barrel after Saudi Arabia closed its East-West pipeline as a precaution following attacks. The dollar rose 0.4%. Ten-year Treasury yields closed in on 5%, while money markets saw a nearly 90% chance of a Federal Reserve rate increase on Wednesday.
“Two unwelcome headwinds collide,” said Tim Waterer, chief market analyst for KCM Trade. “Warnings that AI development needs to slow down, combined with another leg higher in oil prices after the Saudi East-West pipeline closure, are a difficult mix for risk assets.”
Anthropic PBC Chief Executive Officer Dario Amodei said Saturday that the company would introduce fresh safeguards as he urged the industry to slow the development of its most advanced models. OpenAI’s Sam Altman backed the proposal, while xAI’s Elon Musk said “Dario is right.”
Questions remain over how committed AI leaders will be to moderate the pace of development, given intense competition from China. President Donald Trump downplayed the concerns, while China dismissed them as “fearmongering.”
“Having guardrails would help steer the direction of AI development, but we do not think it is going to slow it down,” noted Mohit Kumar at Jefferies. “The direction of travel, in our view, would still remain forward.”
Europe’s Stoxx 600 dipped 0.4%. The region’s bonds underperformed as higher oil and gas prices worsened the inflation outlook. Yields on two-year UK gilts rose 10 basis points to 4.91%. The euro hit a one-month low against the dollar.
Central Bank Meetings
The selloff in tech stocks comes at the start of a week in which both the Fed and Bank of Japan face pressure to raise rates as policymakers meet Wednesday and Friday, respectively, against a backdrop of mounting inflation risks. While a Bank of England hike on Thursday isn’t anticipated, the prospect of a shift toward an increase in November remains on the cards.
The European Central Bank won’t hesitate to raise rates further if necessary, according to Governing Council member Peter Kazimir. ECB policymakers last week lifted rates for the second time since the start of the war in Iran, with markets leaning toward two further increases by December.
“We will take each decision when it is needed, and we will not waver when the evidence calls for action,” Kazimir said Monday in an op-ed on the website of Slovakia’s central bank, which he heads.
Corporate News:
Aon Plc has kicked off a jumbo US investment-grade debt offering to help fund its planned $17 billion acquisition of USI Insurance Services from private equity firm KKR & Co. Kioxia Holdings Corp. is considering raising at least $10 billion by listing American depositary receipts, people familiar with the matter said. Anthropic PBC has picked Nasdaq as its listing venue ahead of a potential record-setting initial public offering, according to a person familiar with the matter. The firm told a group of shareholders it will report an adjusted operating profit this quarter, the Financial Times reported. OpenAI won’t go public this year as the artificial intelligence company focuses on addressing safety-related concerns around the technology, CEO Altman told Fortune in an interview. Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.7% as of 8:27 a.m. New York time Nasdaq 100 futures fell 1.6% Futures on the Dow Jones Industrial Average fell 0.3% The Stoxx Europe 600 fell 0.4% The MSCI World Index fell 0.2% Currencies
The Bloomberg Dollar Spot Index rose 0.4% The euro fell 0.5% to $1.1542 The British pound fell 0.3% to $1.3488 The Japanese yen fell 0.7% to 154.64 per dollar Cryptocurrencies
Bitcoin rose 0.8% to $77,905.82 Ether was little changed at $2,511.81 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.98% Germany’s 10-year yield advanced three basis points to 3.53% Britain’s 10-year yield advanced five basis points to 5.39% Commodities
West Texas Intermediate crude rose 3.5% to $103.52 a barrel Spot gold fell 1.5% to $4,285.96 an ounce This story was produced with the assistance of Bloomberg Automation.
©2026 Bloomberg L.P.
