US equity futures declined on Monday, led by technology stocks, as investors considered calls from artificial intelligence executives to slow the development of advanced AI models and monitored renewed uncertainty surrounding Middle East energy supplies.
Nasdaq 100 futures were down 431 points, or 1.5%, at 03:04 ET (07:04 GMT). S&P 500 futures fell 46 points, or 0.6%, while Dow futures declined 63 points, or 0.1%.
Markets were also preparing for the Federal Reserve’s upcoming interest rate decision. US data showing stronger-than-expected underlying consumer price growth in August contributed to expectations for an interest rate increase this week.
Wall Street had finished the previous week higher as investors monitored diplomatic efforts involving Gulf countries and Iran over tanker traffic through the Strait of Hormuz. A planned regional meeting on the issue has since been delayed.
AI Development Debate Weighs on Technology Shares
Anthropic CEO Dario Amodei called for companies developing advanced artificial intelligence models to reduce the pace of progress, citing risks surrounding the potential misuse of the technology.
“Progress will still seem fast, and we must make wise use of the time we gain,” Amodei wrote in an essay published on Saturday.
The essay followed Anthropic’s disclosure that its Claude AI models had been used by several actors for activities including weapons development and fraud.
Comments supporting concerns about the pace of AI development from OpenAI CEO Sam Altman and xAI chief Elon Musk also drew market attention because of the potential implications for technology-sector capital expenditure.
Deutsche Bank analysts said any changes could affect the “composition of AI capex rather than its scale,” potentially resulting in a greater share of spending being directed towards safety, monitoring and governance.
Altman also said OpenAI would not pursue a possible initial public offering this year because of safety concerns.
SoftBank declined in Japan, while Taiwan Semiconductor Manufacturing Company (NYSE:TSM) traded lower. South Korea’s SK Hynix (NASDAQ:SKHY) and Samsung Electronics (USOTC:SSNHZ) also fell, alongside declines in European technology shares.
Trump Comments on AI Competition With China
US President Donald Trump said the United States should maintain its position relative to China in artificial intelligence.
“We’re leading China in AI. We’re the most sophisticated country in the world and, frankly, I want to keep it that way — because whoever wins AI wins,” Trump told reporters in Ireland.
“We can put guardrails, we can do this and that, but I think you have a lot of negative forces that are bringing it up that shouldn’t be bringing it up, and they’re bringing up things that won’t happen,” Trump added.
Hormuz Meeting Delayed as Regional Supply Risks Continue
A meeting between Gulf countries and Iran over the Strait of Hormuz was postponed after previously contributing to expectations that tanker traffic through the waterway could resume.
Oman’s foreign minister said the meeting had been delayed “in the interests of consensus.”
Iran’s foreign ministry said Tehran would work with Oman to arrange another suitable date, according to Fars news agency.
Iranian officials had previously said an agreement with Oman concerning the reopening of Hormuz would be presented to Gulf Arab states. Before the latest Middle East conflict began in late February, around one-fifth of global oil and liquefied natural gas flows passed through the strait.
Regional energy supply risks also increased after attacks by Iran-backed Houthi militants in Yemen led to the closure of a Saudi east-west oil pipeline. Separate attacks on vessels in the Gulf added to disruption affecting shipping routes.
Oil Prices Rise Following Meeting Delay
Brent crude futures rose sharply on Monday and briefly traded above $108 a barrel. US West Texas Intermediate crude futures also advanced.
ANZ analysts said Saudi Arabia “has now lost the option to use western exports if the Strait of Hormuz deteriorates again.”
“This is likely to put further upward pressure on oil prices this week,” the analysts said.
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