Stocks and futures retreated after major artificial intelligence companies called for a slowdown in the technology’s development, raising concerns about a sector that has powered this year’s rally.
Oil rose. MSCI’s Asia Pacific equities index dropped 0.6%, with the Kospi Index — a barometer of AI investment — falling 2.8%. Chipmakers SK Hynix Inc. and Samsung Electronics Co. lost over 3.5% in Seoul, while SoftBank Group Corp. slumped as much as 13% in Tokyo after OpenAI’s Chief Executive Officer Sam Altman said that the company won’t go public this year.
Futures on the tech-heavy Nasdaq 100 Index declined 1.2% and those for the S&P 500 Index fell 0.5%. European shares were also set to open lower.
Meanwhile, Brent crude rose 2.5% to $107.30 a barrel after Saudi Arabia shut a key oil pipeline following drone attacks and a planned meeting between Iran and Gulf states was postponed.
The dollar strengthened and Treasuries held losses from last week’s selloff, which pushed the benchmark 10-year yield closer to 5%.
That came after hotter-than-expected US inflation strengthened the case for higher interest rates. Swap traders now see a nearly 90% chance the Federal Reserve will raise its key rate Wednesday.
