US stocks fall on talk of slowing AI development

Wall Street stocks fell early Monday as a call from leading artificial intelligence executives to slow the technology weighed on chipmakers and other companies.

On Saturday, Anthropic CEO Dario Amodei advocated for a coordinated slowdown of AI development to better understand the risks, drawing support from other industry leaders.

While the warning was dismissed by US President Donald Trump, shares of Nvidia, AMD and CoreWeave were all lower Monday.

About 15 minutes into trading, the Dow Jones Industrial Average was down 0.2% at 52,458.24.

The broad-based S&P 500 fell 0.7% to 7,606.96, while the tech-rich Nasdaq Composite Index dropped 1.1% to 26,051.32.

"All of a sudden, out of nowhere, all the major CEOs of these AI companies said we have to slow down, because there's a real threat that AI can get out of control," said Adam Sarhan of 50 Park Investments.

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The statement is worrisome because "the AI trade has been the engine of both the economy, and of the stock market over the last several years," Sarhan said.

Markets are also looking ahead to Wednesday's Federal Reserve decision, with markets overwhelmingly predicting a rate hike amid persistent inflation and elevated oil prices.