Key facts
- Nasdaq 100 futures led losses early Monday due to AI safety concerns.
- Anthropic CEO Dario Amodei, Elon Musk, and OpenAI CEO Sam Altman agreed on the need to slow AI development.
- Nvidia shares fell over 2% in premarket trading.
- Meta and Amazon shares were down over 1% each in premarket trading.
- Intel, AMD, and Marvell Technology shares declined nearly 6%, 5%, and 6%, respectively.
- US software stocks like ServiceNow, Adobe, and Workday saw gains.
Futures tracking the Nasdaq 100 index led losses early on Monday, with AI-focused stocks experiencing a selloff after prominent executives voiced concerns over the technology's safety and advocated for a slower pace of development. Nvidia shares fell more than 2% in premarket trading, while Meta and Amazon were down over 1% each.
Anthropic CEO Dario Amodei stated on Saturday that AI companies should slow down the advancement of model capabilities, a sentiment echoed by Elon Musk, who leads xAI, and OpenAI CEO Sam Altman. These statements come after a period of rapid development and significant investment in AI, which has fueled a surge in technology and semiconductor stocks.
At 04:46 a.m. ET, Dow E-minis had shed 97 points (0.18%), S&P 500 E-minis were down 53.25 points (0.70%), and Nasdaq 100 E-minis had fallen 505.5 points (1.72%). Chipmakers also saw declines, with Intel, AMD, and Marvell Technology down nearly 6%, 5%, and 6%, respectively. In contrast, US software stocks, which had previously been impacted by concerns about AI disruption, saw gains, with ServiceNow, Adobe, and Workday climbing 3%, 2.5%, and 2.5% respectively.
Concerns about AI's potential harm were amplified by the resignation of Anthropic researcher Jacob Coxon, who cited beliefs that AI could cause human extinction by the end of the decade. However, some investors urged skepticism. Michael Burry, known for his 2008 housing market bet, suggested on X that these warnings were a tactic by major players to hinder smaller competitors. Brian Jacobsen of Annex Wealth Management also questioned the warnings' credibility, advising caution against fear-based arguments and incumbent firms protecting their market positions.
The declines in technology stocks could influence broader market sentiment ahead of a potential interest rate hike by the Federal Reserve, with traders pricing in an approximately 89% chance of an increase. Market sentiment had already been weakened by recent data showing accelerating inflation and rising oil prices.