Artificial-intelligence stocks slid worldwide after leaders of the industry warned a slowdown is needed for the safety of humanity.
asserted
slowdown → slide → humanity
Another jump in oil prices, meanwhile, briefly sent the yield of the 10-year Treasury to 5 per cent for the bond market’s latest pressure-raising milestone.
asserted
jump → send → milestone
Despite all the downers for Wall Street, gains for many stocks outside AI helped limit the market’s losses.
asserted
gains → help → losses
So did a midday tempering of oil prices, and the S&P 500 fell a relatively modest 0.5 per cent.
asserted
S&P → do → cent
More stocks rose within the index than fell.
asserted
stocks → rise → index
The Dow Jones Industrial Average dropped 152 points, or 0.3 per cent, and the Nasdaq composite sank 0.6 per cent after clawing back most of an early loss of 1.3 per cent.
asserted
composite → drop → cent
The Australian sharemarket is set to edge lower, with futures at 6.18am AEST pointing to a slide of 16 points, or 0.2 per cent, at the open.
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futures → set → open
The ASX closed flat on Monday.
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ASX → close → Monday
The Australian dollar was trading at US71.45¢.
AI stocks have been under pressure a while because of worries their prices shot too high in the frenzy around the technology.
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prices → trade → technology
The concerns jumped to another level over the weekend after one of the industry’s leading voices, Anthropic CEO Dario Amodei, called for a deliberate and global slowdown in the development of AI.
asserted
one → jump → AI
He cited safety issues, including the risk that AI becomes capable of leading a swarm of agents that could take over the entire internet within six to 12 months.
uncertain
that → cite → months
Nvidia, whose profits have soared because its chips are helping to train AI models, sank 3.4 per cent and was the heaviest weight on the market because of its massive size.
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chips → soar → size
SpaceX, which gets a chunk of its business from AI, fell 2 per cent after Elon Musk said over the weekend that he agrees with Amodei.
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he → get → Amodei
Softbank Group, the Japanese giant that is a major investor of OpenAI, lost 10.7 per cent in Tokyo after OpenAI’s Sam Altman likewise supported the concept of a slowdown.
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Altman → lose → slowdown
Altman also said in an interview with Fortune published Saturday that the company behind ChatGPT would likely wait until next year for a sale of its stock on Wall Street.
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company → say → Street
That would delay a potential gusher of cash for Softbank and other early investors in OpenAI.
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That → delay → OpenAI
In South Korea, the Kospi index dropped 3.3 per cent due to losses for its two most influential stocks, Samsung Electronics and SK Hynix.
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index → drop → stocks
President Donald Trump played down the need for his administration to check the development of AI, saying he worried about ceding his country’s edge over China in a global competition and that winning would help address the risks from the advancing technology.
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winning → play → technology
Even with many voices inside and outside the AI industry calling for a slowdown to protect humanity, Trump said on his social media network Monday that the only guardrail it needs “is a STRONG AND SMART (High IQ!) PRESIDENT, and the U.S.A. has that, in spades!”
Helping to limit Wall Street’s losses on Monday were several software companies that tumbled earlier on worries AI-powered competitors would undercut their businesses.
Intuit, the company behind TurboTax and QuickBooks, rose 5.5 per cent.
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Intuit → call → TurboTax
Autodesk, whose software helps designers, climbed 7.8 per cent, and Adobe added 5.3 per cent.
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Adobe → help → cent
All told, the S&P 500 slipped 37.00 points to 7,619.98.
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S&P → tell → 7,619.98
The Dow Jones Industrial Average dropped 152.09 to 54,421.20, and the Nasdaq composite fell 146.62 to 26,186.41.
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composite → drop → 26,186.41
Oil prices, meanwhile, continued to climb as fighting in the Middle East keeps squeezing the global flow of crude.
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fighting → continue → crude
The price for a barrel of Brent crude rose 1 per cent to $US105.68 after getting near $US110 in the morning.
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price → rise → morning
An important Saudi oil pipeline will mostly be out of service for weeks following an attack last week, two regional officials told The Associated Press.
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officials → follow → Press
The pipeline offered a way for Saudi Arabia to shift exports to the Red Sea and avoid the Persian Gulf’s Strait of Hormuz, where Iranian attacks have stifled the movement of oil tankers.
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attacks → offer → tankers
Brent has jumped from less than $US72 in early July as doubts rise that the United States and Iran can come to an agreement that would allow oil tankers to freely exit the Persian Gulf through the strait again.
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tankers → jump → strait
While the prospect of a de-escalation of war in Iran may have dimmed, ING commodities strategists Warren Patterson and Ewa Manthey wrote in a commentary on Monday that the situation is still fluid and “sizable” volumes of oil have still been moving through the strait.
uncertain
volumes → dim → strait
So far, the jump in oil prices has sent the average cost of a gallon of regular gasoline across the country to nearly $US4.32 from $US4.08 a month ago and $US3.18 a year ago, according to AAA.
uncertain
jump → send → AAA
Such upward pressure on inflation has much of Wall Street expecting the Federal Reserve will hike its main interest rate on Wednesday at the end of its next meeting.
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Reserve → have → meeting
Besides high inflation, worries about rising debt for the U.S. and other governments and other concerns have sent longer-term Treasury yields to their highest levels in years.
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worries → rise → years
The yield on the 10-year Treasury briefly breached the 5.00 per cent level during the morning for the first time in nearly three years.
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yield → breach → years
That’s up from 4.96 per cent late Friday and just 3.97 per cent before the war with Iran began in February.
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war → ’ → February
But the 10-year yield later pulled back to 4.98 per cent after oil prices came off their highs for the day.
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prices → pull → day
The 10-year yield has not consistently remained above 5 per cent since the turn of the millennium, and its jump has already made it more expensive for U.S. households and companies to borrow.
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households → remain → millennium
That includes the highest average long-term mortgage rate in more than 14 months.
asserted
That → include → months
The Aporia
