US Stocks Today: US Stocks End Lower as AI Slowdown Fears Hit Chipmakers
Nvidia fell 2.6% and Broadcom, Micron Technology and Advanced Micro Devices each dropped about 4% as investors priced in a likely Fed rate hike.
- On Monday, Wall Street dipped as leaders of Anthropic, OpenAI, and xAI warned of risks from rapid artificial intelligence development, triggering a global selloff in AI-linked stocks and chipmakers including Nvidia, which fell 2.6%.
- Rising inflation, heavy corporate borrowing, and long-term fiscal concerns sent Treasury yields higher over the past month, culminating in the 10-year yield surpassing 5% on Monday for the first time since 2023, a threshold analysts warned could threaten the bull market.
- The PHLX chip index tumbled 5.4%, reducing its 2026 gain to 58%, while software stocks including ServiceNow, Adobe, and Workday rallied between 4% and 8% despite margin concerns from AI competition.
- Traders are pricing in a 90% chance the Federal Reserve will raise interest rates by 25 basis points on Wednesday to combat inflation, as the Nasdaq declined 0.10% and the Dow fell 0.27%, with eight of 11 S&P 500 sectors declining.
- Brent crude futures advanced 1% to $106 amid Middle East supply concerns, while the S&P 500 traded at 19 times expected earnings, its cheapest valuation since April 2025 when President Donald Trump's Liberation Day tariff announcements roiled markets.
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AI Taps the Bubble: Technology Lowers Wall Street Expectations Following OpenAI and Anthropic Alarms
For years, big techs have had to convince the market that billions of dollars destined for artificial intelligence will end up generating profits. Now, when investments continue to grow and expectations are becoming more difficult to meet, a new element appears that can justify the pace of development beginning ... Continue reading "The AI punctures the bubble: technology lowers Wall Street expectations following OpenAI and Anthropic alarms"
Wall Street Woes: AI Concerns and Treasury Yields Shake Markets
Monday saw Wall Street tumble as AI leaders called for a halt in AI development due to safety concerns. Treasury yields rose above 5% for the first time since 2023, unsettling investors ahead of a Federal Reserve meeting. Broader concerns about U.S. fiscal health and energy supply added to market anxiety.
The U.S. stock exchange started the week on negative ground, pressed by the takeover of leaders of the artificial intelligence industry on the need for a slowdown in the development of technology. OpenAI pushed a stock exchange this year and the issue came to the White House, with Donald Trump rejecting any brake on AI.
Reformatorisch Dagblad
Wall Street closed lower on the first trading day of the week. Losses at Nvidia and other chip companies weighed on the markets in particular, after top executives of American AI companies expressed concerns about the safety of artificial intelligence. Investors were also nervous after yields on US Treasury bonds briefly rose above 5 percent. That was the first time since 2023.
The Economic Times
Times of IndiaUS stocks today: US stocks end lower as AI slowdown fears hit chipmakers
US stocks ended lower as Nvidia and other chipmakers fell after AI leaders raised safety concerns and called for slower development. Rising Treasury yields, with the 10-year briefly crossing 5%, and higher oil prices added to market pressure ahead of the Federal Reserve meeting, keeping investors cautious.
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