By Noel Randewich <\/p>\n
Sept 14 (Reuters) – Wall Street dipped on Monday, weighed down by losses in Nvidia and other chipmakers after top executives in U.S. artificial intelligence companies raised safety concerns and called for \u200ca slowdown in the development of AI. <\/p>\n
Investors were also jittery after the benchmark 10-year Treasury yield briefly \u200csurpassed 5% for the first time since 2023 ahead of this week’s Federal Reserve meeting. The U.S. central bank is widely expected to raise \u200binterest rates. <\/p>\n
AI-linked stocks plunged worldwide after the leaders of Anthropic, OpenAI and xAI warned of risks from rapid development, the starkest threat yet to the billions of dollars being poured into the industry that have driven markets to record highs. <\/p>\n
Shares of Nvidia declined 2.6%, while Broadcom, Micron Technology and Advanced Micro Devices each fell around 4%. <\/p>\n
The PHLX chip index tumbled 5.4%, reducing \u200cits 2026 gain to 58%. <\/p>\n
Brent crude futures \u2060advanced 1% to $106 as worries about energy supplies mounted following new strikes on Saudi Arabian energy infrastructure and attacks on ships in the Middle East. <\/p>\n
High inflation, heavy corporate and government borrowing \u2060and concerns about the long-term U.S. fiscal trajectory have sent U.S. Treasury yields higher in the past month. The 5% mark that the 10-year yield hit on Monday is a threshold that analysts warned could ripple through the U.S. economy and threaten \u200bthe bull \u200bmarket in stocks by denting the relative appeal of U.S. \u200bequities. <\/p>\n
Traders are pricing in a 90% chance that \u200cthe Fed will raise interest rates by 25 basis points at its policy meeting on Wednesday to fight inflation related to high oil prices, according to CME’s FedWatch. <\/p>\n
“The 10-year going above 5% is huge and speaks volumes, and it may pressure the Fed to do more than just one rate hike,” said Jake Dollarhide, CEO of Longbow Asset Management. <\/p>\n
The S&P 500 was down 0.27% at 7,636.02 points. <\/p>\n
The Nasdaq declined 0.10% to 26,306.65 points, while the Dow Jones Industrial Average \u200cwas down 0.27% at 52,433.44 points. <\/p>\n
ServiceNow, Adobe and Workday rallied between \u200b4% and 8%. Those and other software stocks have sold off in \u200brecent sessions over worries that competition from AI \u200bcompanies could hurt their margins. <\/p>\n
The S&P 500’s recent decline, coupled with a strong earnings outlook, has \u200cthe benchmark trading at 19 times expected earnings. \u200bThat is its cheapest since \u200bApril 2025, when U.S. President Donald Trump’s “Liberation Day” tariff announcements threw global markets into a tailspin. <\/p>\n
Eight of the 11 S&P 500 sector indexes declined, led lower by industrials, down 1.59%, followed by a 1.22% loss in \u200butilities. <\/p>\n
Advancing issues outnumbered falling ones within the \u200cS&P 500 by a 1.1-to-one ratio. <\/p>\n
The S&P 500 posted nine new highs and eight new lows; the \u200bNasdaq recorded 41 new highs and 174 new lows. <\/p>\n
(Reporting by Niket Nishant and Tharuniyaa Lakshmi in \u200bBengaluru; Editing by Sherry Jacob-Phillips, Pooja Desai and David Gregorio) <\/p>\n","protected":false},"excerpt":{"rendered":"By Noel Randewich Sept 14 (Reuters) – Wall Street dipped on Monday, weighed down by losses in Nvidia…\n","protected":false},"author":2,"featured_media":895716,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[33153,62,276,156180,277,49,48,6494,61],"class_list":["post-895715","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-advanced-micro-devices","tag-ai","tag-artificial-intelligence","tag-artificial-intelligence-companies","tag-artificialintelligence","tag-ca","tag-canada","tag-nvidia","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/895715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=895715"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/895715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/895716"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=895715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=895715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=895715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}