U.S. stock futures moved lower on Monday as markets reacted to intensifying debate over artificial intelligence safety and another jump in oil prices. S&P 500 futures fell 0.6%, Nasdaq-100 futures dropped 1.5%, and Dow Jones Industrial Average futures were down 114 points, or 0.2%.
European markets were mostly weaker. The pan-European Stoxx 600 index slipped about 0.3%. Energy stocks stood out as a rare bright spot, with the U.K.’s FTSE 100 rising 0.7%, supported by gains in oil majors BP and Shell.
Trading in Asia was mixed but broadly negative. Japan’s Nikkei 225 closed 0.81% lower, while South Korea’s Kospi fell 3.26%. Australia’s S&P/ASX 200 edged up 0.10%, while mainland China’s CSI 300 ended down 0.67% at 4,480.08.
AI-linked stocks added to the pressure on broader markets. Anthropic CEO Dario Amodei said in an essay published Saturday that AI companies should slow the pace of development of their most advanced models because of safety risks. Speaking to CBS News on Sunday, he said the “toughest dilemma” in such a proposal was what would happen if China did not do the same.
OpenAI CEO Sam Altman also weighed in, saying in a Saturday interview that an IPO this year would be “ill-advised.” Following those remarks, Nvidia fell 2% in premarket trading, Broadcom dropped 3%, Advanced Micro Devices lost 5%, Intel fell 6%, and Marvell Technology declined 7%.
Oil prices, meanwhile, rose after Saudi Arabia shut a key pipeline that bypasses the Strait of Hormuz. West Texas Intermediate crude futures gained 3% to above $103 per barrel, while Brent crude futures also rose 3% to above $108. U.S. crude moved above $100 per barrel last week for the first time since May as conflict in the Middle East escalated.
Last week’s oil rally had already weighed on the major U.S. indexes. The Dow fell 1.6% for the week, marking its biggest weekly loss since March. The S&P 500 and Nasdaq Composite shed about 0.8% and 0.7%, respectively.
Investors are also focused on the Federal Reserve’s September policy meeting. According to CME’s FedWatch tool, fed funds futures traders are pricing in roughly an 88% chance of a rate hike.
Sector and stock moves before the open
Among notable premarket movers were chipmakers and energy names. Intel slid nearly 6%, Marvell Technology fell more than 7.4%, and Advanced Micro Devices lost more than 5%. At the same time, the State Street Energy Select Sector SPDR ETF (XLE) gained more than 1.2%, while Diamondback Energy, APA, Marathon Petroleum and EOG Resources each advanced about 2%.
Cybersecurity stocks also rose as mounting concern over AI safety boosted interest in defensive technology plays. Palo Alto Networks traded more than 4% higher, while CrowdStrike climbed 5.4%.
Gold and silver retreat
Precious metals prices moved lower in early trading ahead of the Federal Reserve’s rate decision later this week. Spot silver dropped more than 3% to $62.54/oz, while spot gold fell about 1% to $4,306.19/oz.
