U.S. stock futures fell on Monday as investors reacted to calls from major artificial intelligence leaders to slow AI development. At the same time, rising oil prices and expectations of a Federal Reserve rate hike added pressure across global markets.
Nasdaq-100 futures dropped about 1.7% in early trading, while S&P 500 futures fell around 0.7%. Dow futures declined about 0.2%. Semiconductor stocks led the technology selloff after several AI executives raised fresh safety concerns.
Anthropic CEO Dario Amodei called for AI companies to slow the development of their most advanced models. He argued that companies need more time to build safety measures before model capabilities advance further.
“We must slow the pace at which we improve the capabilities of A.I. models,” Amodei wrote in an essay published over the weekend. He added that progress could continue, but companies should allow safety work to keep pace.
OpenAI CEO Sam Altman and xAI chief Elon Musk also backed calls for greater caution from AI companies. Altman said AI companies need safety systems that remain ahead of advances in model capabilities. He also supported a federal framework that would set common safety requirements for frontier AI.
However, some market participants questioned the warnings. Investor Michael Burry suggested that large AI companies could use tighter development rules to limit competition. Annex Wealth Management strategist Brian Jacobsen also called for caution when assessing claims about future AI risks.
Chip stocks recorded some of the largest premarket losses. Nvidia shares fell more than 2%, while Intel dropped nearly 6%. AMD declined about 5%, and Marvell Technology lost close to 6%.
Meta and Amazon also traded more than 1% lower. Other AI-linked companies, including Micron, Broadcom and Super Micro Computer, faced selling pressure as traders reassessed expectations for AI infrastructure spending.
Meanwhile, several software companies moved higher. ServiceNow gained around 3%, while Adobe and Workday rose about 2.5% each. Some software stocks have struggled in recent months because investors feared that AI tools could disrupt traditional software businesses.
The selloff also spread to Asian markets. South Korea’s KOSPI fell 3.26%, while Japan’s Nikkei 225 closed 0.81% lower. European shares also traded mostly lower.
Oil prices moved sharply higher as conflict in the Middle East raised fresh concerns about supply. Brent crude futures climbed about 3.6% to USD 108.31 a barrel. West Texas Intermediate rose around 3.3% to USD 103.35.
In addition, Saudi Arabia shut its East-West oil pipeline after multiple drone attacks. The pipeline provides an alternative export route that allows oil shipments to bypass the Strait of Hormuz.
Meanwhile, a planned meeting between Gulf states and Iran was postponed. The delay reduced hopes for near-term diplomatic progress as traders watched developments around major oil shipping routes.
Higher oil prices added another concern for investors because rising energy costs can push inflation higher. Brent crude has now returned to levels last seen in May.
Investors also turned their attention to the Federal Reserve's policy meeting this week. The central bank will announce its interest-rate decision on Wednesday.
Traders placed the probability of a rate increase at roughly 86% to 89%, according to CME FedWatch figures cited in market reports. Expectations shifted after U.S. inflation data showed that price pressures remained firm in August.
The U.S. 10-year Treasury yield traded near 4.97% on Monday after reaching close to a three-year high on Friday. Rising bond yields have also created pressure for growth stocks, particularly technology companies with high valuations.
Meanwhile, gold and silver prices moved lower before the Fed decision. Spot gold fell about 1% to USD 4,306.19 an ounce, while silver dropped more than 3% to USD 62.54.
Markets now face several major factors at the same time, including the AI safety debate, rising oil prices, higher bond yields, and the upcoming Fed decision. Traders will continue to watch technology shares and energy markets as Monday's U.S. session develops.