Daily US Market News

Nasdaq Futures Slide as AI Fears and Middle East Tensions Weigh on Markets

Opening Bell: Key Catalysts Set to Move Markets Today

• U.S. stock futures fell sharply, led by the Nasdaq 100, as investors reacted to concerns over the pace and safety of AI development.

• Nasdaq 100 futures dropped 1.56%, while S&P 500 futures fell 0.68% and Dow futures declined 0.15%.

• Nvidia shares declined more than 2% in premarket trading, while Amazon fell 1%.

• Chip stocks came under heavy pressure: Marvell Technology dropped 7%, Intel 5.5%, and AMD 5.1%.

• Anthropic CEO Dario Amodei urged AI companies to slow the development of advanced models over safety concerns.

• OpenAI CEO Sam Altman and xAI chief Elon Musk expressed support for Amodei’s position.

• The comments fueled concerns that the massive AI investment cycle could lose momentum, although analysts said spending could shift toward safety, monitoring, and governance rather than decline outright.

• Software stocks rose as investors viewed AI disruption concerns as potentially easing; ServiceNow, Adobe, and Workday all gained.

• Market sentiment was already weak following data showing U.S. inflation accelerated, increasing pressure on the Federal Reserve.

• Traders priced in an almost 89% chance of a Fed rate hike later in the week.

• Oil prices surged amid escalating Middle East tensions and uncertainty over the reopening of the Strait of Hormuz.

• Brent crude rose 2.5% to $107.28 a barrel, while U.S. crude gained 2.3% to $102.39.

• Diplomatic talks involving Iran and Gulf countries were postponed, raising concerns about continued disruption to a key global oil transit route.

• Attacks on Saudi Arabia and vessels in the Gulf added to fears of further energy supply disruptions.

• Investors are closely watching Wednesday’s Federal Reserve interest-rate decision, with energy-driven inflation a central concern.