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Source: Newsmaker.id
US stock markets weakened during Monday's trading (Sept. 14) as investors grappled with pressure from tech stocks, rising Treasury yields, and a surge in oil prices. The S&P 500 fell approximately 0.7%, the Nasdaq Composite slid 1%, and the Dow Jones lost around 233 points, or 0.4%.
The heaviest pressure stemmed from artificial intelligence-related stocks. Sentiment soured after Anthropic CEO Dario Amodei called for a slowdown in the development of the most advanced AI models due to safety concerns. OpenAI CEO Sam Altman also stated that an IPO this year was not the right move, adding to uncertainty regarding valuations in the AI sector.
Major tech stocks also came under pressure. Nvidia and Broadcom each fell about 3%, AMD and Intel weakened by 5%, and Marvell Technology plunged roughly 6%. This decline made the technology sector the primary drag on the Nasdaq.
The market was also weighed down by rising oil prices after Saudi Arabia shut down a key pipeline that served as an alternative to the Strait of Hormuz. WTI crude rose about 3% to surpass US$103 per barrel, while Brent surged around 4% to exceed US$108. Rising energy costs have reignited concerns regarding global inflation.
Newsmaker Analysis: Wall Street faces mounting pressure as the market contends with a combination of risks involving AI, high oil prices, and expectations of a Federal Reserve rate hike. The yield on the 10-year US Treasury note even breached 5.012%, its highest level since October 2023. With the probability of a Fed rate hike approaching 90%, tech stocks and risk assets remain likely to face high volatility. (arl)
Source: Newsmaker.id