Tech Stocks Slump After AI Execs Call for Industry Slowdown
Nasdaq 100 futures led losses as Nvidia and other AI stocks fell, with traders pricing in an 89% chance of a Federal Reserve rate increase.
- On Monday, Nasdaq 100 E-minis fell 1.72% as markets reacted to warnings from Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman that artificial intelligence development requires a slowdown.
- Amodei called on companies Saturday to slow AI advancement, citing safety risks; Altman and Elon Musk agreed that AI agents could cause massive damage within a year.
- Chipmakers Intel, AMD, and Marvell Technology fell nearly 6%, 5%, and 6% respectively, while shares of OpenAI investor SoftBank crashed as much as 13% in Japan.
- Investor Michael Burry dismissed the warnings as "hype & puffery," arguing that major players use safety concerns to stifle smaller competitors ahead of their IPOs.
- Traders are pricing in a nearly 89% chance of a rate increase by the Federal Reserve, with potential interest rate hikes later this week continuing to weigh on technology stocks.
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Nvidia, Intel and other techs fell on Monday after Dario Amodei asked to slow down the development of AI, while bitcoin rose to $78,280.
Wall Street Dismisses AI Slowdown Fears As Hyperscaler Spending Races Toward $600 Billion (NASDAQ: GOOGL, NASDAQ: AMZN, NASDAQ: MSFT)
Semiconductor stocks dropped Monday after Anthropic (ANTH.PVT) CEO Dario Amodei issued a public plea urging the industry to “slow down the AI industry.” OpenAI (OPAI.PVT) CEO Sam Altman echoed the warning, and even Tesla and SpaceX CEO Elon Musk voiced his agreement with the cautious message. Despite the high-profile pushback from AI leaders, Wall Street analysts are maintaining that development and capital spending will continue without meaning…
Analysts predict that volatility over AI will continue in the short term in markets.
Stocks dip sharply lower as AI leaders call for industry slow down
Seoul stocks opened sharply lower Tuesday as investors sold off tech heavyweights following calls from artificial intelligence (AI) leaders that the AI industry should slow down. The benchmark Korea Composite Stock Price Index (KOSPI) was down 34.69 points, or 0.52 percent, to 6,649.68 as of 9:16 a.m. Overnight, stocks in the United States closed lower on a slump in tech stocks, as investors reacted to comments from AI executives that the indust…
The warnings from AI companies about the dangers of their products cause uncertainty on Wall Street. Especially chip manufacturers do not get well. In addition, the nervousness increases before the Fed's interest rate meeting.
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