AI stocks drop on calls for a slowdown as rising oil prices push the 10-year yield to 5%

NEW YORK (AP) — Artificial-intelligence stocks are sliding worldwide Monday after leaders of the industry warned a slowdown is needed for the safety of humanity. Another jump in oil prices, meanwhile, briefly sent the bond market to its latest pressure-raising milestone as the yield on the 10-year Treasury touched 5% for the first time since 2023.Despite all the downers for Wall Street, gains for many stocks outside AI helped limit the market's losses. So did a midday tempering of oil prices, and the S&P 500 fell a relatively modest 0.3% as more stocks rose within the index than fell.The Dow Jones Industrial Average was down 74 points, or 0.1%, as of noon Eastern time, and the Nasdaq composite was 0.4% lower after clawing back most of an early loss of 1.3%.AI stocks have been under pressure a while because of worries their prices shot too high in the frenzy around the 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.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.Nvidia, whose profits have soared because its chips are helping to train AI models, sank 2.8% and was the heaviest weight on the market because of its massive size.SpaceX, which gets a chunk of its business from AI, slipped 0.1% after Elon Musk said over the weekend that he agrees with Amodei. Softbank Group, the Japanese giant that is a major investor of OpenAI, lost 10.7% in Tokyo after OpenAI’s Sam Altman likewise supported the concept of a slowdown.Altman also said in an interview with Fortune published Saturday that OpenAI would likely wait until next year for a sale of its stock on Wall Street, potentially delaying a gusher of cash for Softbank and other early investors in OpenAI.In South Korea, the Kospi index dropped 3.3% due to losses for its two most influential stocks, Samsung Electronics and SK Hynix.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.Even with so many voices inside and outside the AI industry callin… Another jump in oil prices, meanwhile, sent the bond market to its latest pressure-raising milestone as the yield on the 10-year Treasury briefly touched 5% for the first time since 2023.Despite all the downers for Wall Street, gains for many stocks outside AI helped limit the market's losses.

The Nasdaq composite, which has many more tech stocks, dropped a market-leading 0.7%, while the Dow Jones Industrial Average was down 209 points, or 0.4%, as of 11:30 a.m. Eastern time.AI stocks have been under pressure a while because of worries their prices shot too high in the frenzy around the technology.