【ANN NEWS, NEW YORK】 Global AI-related stocks broadly declined on Monday as investor concerns grew over valuations and development risks in the artificial intelligence industry. However, oil prices retreated from their early-session highs, while gains in some non-AI sectors helped limit overall losses in U.S. stocks. The S&P 500 fell about 0.3% at one point, the Dow Jones Industrial Average declined about 0.2%, while the Nasdaq Composite significantly pared an early loss of 1.3%.
AI leader Nvidia fell 2.6%, making it a major drag on the broader market. Japan’s SoftBank Group plunged 10.7% in Tokyo, while South Korea’s Kospi index fell 3.3%. AI stocks had already come under pressure recently over elevated valuations, while calls from technology leaders including Anthropic CEO Dario Amodei to slow AI development and strengthen safety measures further weighed on market sentiment.
Meanwhile, tensions in the Middle East continued to push energy prices higher. International benchmark Brent crude approached $110 per barrel at one point before retreating to about $105.68. The average U.S. price for regular gasoline has also risen to about $4.32 per gallon, up from $4.08 a month earlier.
Inflationary pressure from higher oil prices also put the Federal Reserve’s next steps in focus. The yield on the 10-year U.S. Treasury briefly topped 5% in early trading Monday for the first time in nearly three years, before falling to about 4.96% as oil prices retreated. Markets are also watching the Federal Reserve’s interest-rate meeting this week and whether it will raise rates further.
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