Global markets decline as AI stocks fall
Most global stock indices fell today, weighed down by a sell-off in shares of companies linked to artificial intelligence, following calls from prominent industry executives to slow the pace of development for safety reasons.
US stock futures also dipped slightly, while oil prices rose by more than 2% amid growing concerns about global supplies.
In contrast, Hong Kong’s Hang Seng Index rose 0.5% to 24,917.60 points, while China’s Shanghai Composite Index fell by less than 0.1% to 3,885.33 points.
Japanese conglomerate SoftBank, one of the largest investors in OpenAI, was among the biggest losers, dropping 10.7% after OpenAI CEO Sam Altman endorsed Anthropic CEO Dario Amodei’s call to slow AI development to ensure its safety.
Dan Baker, an analyst at Morningstar, said SoftBank’s share decline reflects investor concerns that regulators might intervene to slow the development of AI technologies to avoid potential risks warned about by companies in the sector.
He added that markets may also be worried that any further incidents or issues involving advanced AI models could lead to a slowdown in development in the future.
Global tech stocks linked to AI fell during trading, pressured by Amodei’s call to slow the pace of developing this emerging technology, a stance supported by rival CEOs.
SoftBank, a major investor in OpenAI, saw its shares plunge by more than 10%, while major semiconductor companies also suffered significant losses; South Korea’s SK Hynix fell by more than 6%, and Samsung Electronics dropped by over 4%.
In European markets, the decline extended to major chipmakers and data center infrastructure firms; Netherlands-based ASML fell by more than 4%, Infineon dropped 6%, and Siemens Energy, Schneider Electric, and Nokia fell by approximately 6%, 5%, and 9%, respectively.
Major US stocks also declined in pre-market trading. Micron Technology, a memory chip manufacturer, fell by about 5%, Intel dropped by roughly 6%, and Nvidia fell by more than 2%.
The losses reflect the sensitivity of tech stocks to changes in the standard growth assumptions for chip sales and utilization rates that underpin sector valuations. However, since the calls are limited to regulating the pace of development rather than halting it entirely, structural demand is likely to remain above supply, limiting the extent of the correction in the medium term.
US stocks had closed higher on Friday, with the S&P 500 rising 0.9%, the Dow Jones Industrial Average gaining 1%, and the Nasdaq Composite Index increasing by 1%.
In the currency market, the dollar rose to 154.56 yen from 153.58 yen in previous trading, while the euro fell to $1.1542 from $1.1598.
