New York Stocks Open Lower Amid Double Blow of AI Slowdown Concerns and Surging Oil Prices, Nasdaq Falls 1.2%

[Financial News] U.S. stocks opened broadly lower as Wall Street faced a double blow: calls from Silicon Valley to slow the pace of artificial intelligence (AI) development and a surge in oil prices following an attack on a Saudi Arabian oil pipeline.
As of 9:40 a.m. local time on the 14th, the S&P 500 Index had fallen 55.00 points, or 0.72%, from the previous session to 7,601.98 on the New York Stock Exchange (NYSE). The technology-heavy NASDAQ Composite Index dropped 319.05 points, or 1.21%, to 26,013.99, while the Dow Jones Industrial Average (DJIA) declined 115.94 points, or 0.22%, to 52,457.35. All three major indexes remained in negative territory.
The biggest factor weighing on the market was a sharp cooling in investor sentiment toward technology stocks. Dario Amodei, CEO of Anthropic, warned, "The pace of AI development is accelerating, so we need to slow it down." Elon Musk, CEO of Tesla, and Sam Altman, CEO of OpenAI, subsequently voiced support for the view, fueling concerns about an AI bubble.
The market shock intensified after OpenAI CEO Sam Altman said the company would postpone its initial public offering (IPO), originally planned for this year, citing the need for additional safety research. Shares of semiconductor and AI-related companies plunged at the open on concerns that spending on AI technology could decline, with NVIDIA Corporation down 3.95%, Intel down 6.69%, and Marvell Technology down 8.45%.
A sharp rise in international oil prices, driven by geopolitical tensions in the Middle East, also heightened market anxiety. Oil prices surged after reports said the operation of Saudi Arabia's East-West Pipeline, which had served as an alternative route to the Strait of Hormuz, would be suspended for at least three to five weeks following a drone attack by an Iran-aligned Iraqi militia. West Texas Intermediate crude oil (WTI) for October delivery jumped more than 3% from the previous session, breaking above $103 a barrel, while Brent Crude Oil also rose above $109.
The energy supply-chain uncertainty has revived inflation concerns and is weighing heavily on markets ahead of the Fed's interest-rate decision at the September Federal Open Market Committee (FOMC) meeting scheduled for the 16th.
By sector, energy stocks benefited from higher oil prices, with APA Corporation up 3.21%, while health care also advanced. Technology and industrial stocks, however, broadly declined.


[email protected] Park Ji-hyun Reporter