(Sept 14): Equities fell around the world on Monday after leaders of the biggest artificial-intelligence (AI) firms proposed slowing the technology’s development, while an advance in oil prices sapped risk sentiment further.
Tech stocks led declines as traders fretted that efforts to rein in cutting-edge AI could weigh on the boom driving hundreds of billions of dollars in capital spending. Nasdaq 100 futures sank 1.6%. OpenAI backer SoftBank Group Corp slid the most in nearly three months in Japan, while South Korea’s Kospi index slumped 3.3%. In Europe, the Stoxx 600 was down 0.3%.
“There was a bit of irrational exuberance in the middle of the summer that’s been unwound,” said Chris Armstrong at Berenberg. “This is, I think, another leg bringing down expectations.”
Further disruptions to crude supplies from the Middle East added to the downbeat mood. Brent jumped 3.1% to top US$107 (RM435) a barrel after Saudi Arabia closed its East-West pipeline as a precaution following attacks. The dollar rose 0.3%. Treasuries were little changed as money markets continued to see a more than 85% chance of a Federal Reserve (Fed) rate increase on Wednesday.
“Two unwelcome headwinds collide,” said Tim Waterer, the chief market analyst of KCM Trade. “Warnings that AI development needs to slow down, combined with another leg higher in oil prices after the Saudi East-West pipeline closure, are a difficult mix for risk assets.”
Corporate highlights:
- Anthropic PBC has picked Nasdaq as its listing venue ahead of a potential record-setting initial public offering, according to a person familiar with the matter. The firm told a group of shareholders it will report an adjusted operating profit this quarter, the Financial Times reported.
- OpenAI won’t go public this year as the AI company focuses on addressing safety-related concerns around the technology, chief executive officer Sam Altman told Fortune in an interview.
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 were down 0.3% as of 8.54am London time
- S&P 500 futures fell 0.7%
- Nasdaq 100 futures fell 1.6%
- Futures on the Dow Jones Industrial Average fell 0.2%
- The MSCI Asia-Pacific Index fell 0.8%
- The MSCI Emerging Markets Index fell 1.3%
Currencies
- The Bloomberg Dollar Spot Index rose 0.3%
- The euro fell 0.5% to US$1.1544
- The Japanese yen fell 0.5% to 154.39 per dollar
- The offshore yuan was little changed at 6.7077 per dollar
- The British pound fell 0.3% to US$1.3489
Cryptocurrencies
- Bitcoin rose 0.6% to US$77,810.54
- Ether rose 0.3% to US$2,519.66
Bonds
- The yield on 10-year Treasuries was little changed at 4.97%
- Germany’s 10-year yield advanced three basis points to 3.53%
- Britain’s 10-year yield advanced five basis points to 5.39%
Commodities
- Brent crude rose 3.1% to US$107.81 a barrel
- Spot gold fell 0.9% to US$4,311.71 an ounce
Uploaded by Tham Yek Lee