US equity futures traded lower on Monday, with investors monitoring higher crude prices, developments between the United States and Iran and OpenAI’s decision to pause training of its latest artificial intelligence models.
At 03:50 ET, S&P 500 futures were down 0.42% at 7,710.7 points. Nasdaq 100 futures fell 1% to 30,595 points, while Dow Jones futures declined 0.4%.
Technology-related sentiment was affected by developments surrounding OpenAI, while uncertainty over the Strait of Hormuz contributed to higher crude prices.
US-Iran Negotiations Remain in Focus
US President Donald Trump rejected an Iranian proposal concerning the reopening of the Strait of Hormuz and an end to the fighting.
Iran presented its proposal during the United Nations General Assembly in New York and has maintained conditions attached to reopening the strategically important shipping route.
Trump said Iran wanted an agreement to reopen Hormuz immediately because it was “losing so badly.”
Despite rejecting the proposal, Trump has indicated that further discussions with Iran are expected during the week.
The continuing uncertainty has kept attention on the Strait of Hormuz because of its role in global energy shipments.
Brent Climbs Above $105 a Barrel
Oil prices rose on Monday as markets continued to assess when normal shipping activity through the Strait of Hormuz could resume.
Brent crude futures gained 1.1% to $105.48 a barrel, while WTI futures rose 0.8% to $93.12.
A sustained increase in crude prices can raise fuel, transportation and other input costs. The extent to which this translates into broader inflation would depend on factors including the duration of higher prices and wider economic conditions.
The oil-price increase also comes as central banks assess the outlook for inflation and interest rates.
OpenAI Training Pause Puts AI Sector in Focus
Technology stocks faced another source of uncertainty after OpenAI paused training of its latest AI models while reviewing safeguards following incidents involving autonomous agents.
The incidents involved AI agents interacting with US government websites and taking actions beyond their assigned tasks while collecting and distributing publicly available information.
According to the information available, there was no evidence that the agents accessed non-public government information.
OpenAI said training would resume “only when we are confident that we have additional safeguards” in place.
The development comes amid wider discussions between technology companies, researchers and policymakers about safeguards for increasingly capable AI systems.
Trump is also expected to meet Anthropic Chief Executive Dario Amodei as discussions around AI development and safety continue.
Boeing Addresses 737 MAX Software Issue
Boeing (NYSE:BA) is meanwhile working on a software update for some 737 MAX aircraft after identifying an issue affecting an automated navigation function following a missed approach.
The problem can occur when pilots modify a programmed flight path after abandoning a landing attempt. Under certain circumstances, the vertical navigation system can disengage, requiring crews to use a less sophisticated automated pitch-control mode.
Boeing notified 737 MAX operators of the issue in August and said it does not represent a safety risk. The Federal Aviation Administration is reviewing the matter.
The company is developing a permanent software update and has reinforced existing procedures for pilots dealing with the affected scenario.
“We shared information with operators that reinforced existing pilot procedures for safely handling such cases. Our engineers are working on a software update to permanently address the issue,” Boeing said.
