Markets Slide on AI Development Slowdown Concerns and Rising Oil Prices

The S&P 500 Index ($SPX) (SPY) declined 0.65% today, while the Dow Jones Industrial Average ($DOWI) (DIA) was down 0.20% and the Nasdaq 100 Index ($IUXX) (QQQ) fell 1.48%. E‑mini S&P futures (ESU26) slipped 0.58% and September E‑mini Nasdaq futures (NQU26) were off 1.30%.

Major equity benchmarks weakened, with the Nasdaq 100 reaching a six‑week low. Declines were led by chipmakers and AI‑infrastructure firms after top AI executives proposed a slower pace of development, raising worries that tighter controls could curb billions of dollars of capital spending on emerging technologies. Software companies, however, posted modest gains as the prospect of reduced AI investment eased concerns about potential disruption in that sector.

AI‑related stocks retreated after Anthropic CEO Amodei announced new safety safeguards and urged a slowdown in the rollout of the most advanced models. The proposal was supported by OpenAI’s Sam Altman and xAI’s Elon Musk.

Crude oil prices jumped more than 3%, boosting inflation expectations and pressuring equities as higher inflation expectations push global interest rates upward. The UK gilt 10‑year yield hit a 19‑year high of 5.41%, the German Bund 10‑year yield reached a 17‑year peak of 4.54%, and the U.S. 10‑year Treasury note yield climbed to a 2.75‑year high of 4.99%.

October WTI crude (CLV26) rose over 3% amid concerns that global supplies will tighten further after Saudi Arabia shut its East‑West pipeline, which transports about 7 million barrels per day, following attacks by Houthi rebels. The kingdom’s crude production in August fell to 6.238 million bpd, the lowest level since 1990. Markets price an 88% probability of a 25‑basis‑point Fed rate hike at the upcoming FOMC meeting.

Abroad, the Euro Stoxx 50 slipped to a six‑week low, losing 1.18%, while China’s Shanghai Composite edged down 0.07%. Japan’s Nikkei‑225 also hit a six‑week low, closing 0.81% lower.

Interest Rates

December 10‑year T‑notes (ZNZ6) fell three ticks, pushing the yield up 1.9 bp to 4.985% and marking a 2.75‑year high of 4.988%. The rise reflects higher inflation expectations from the oil rally and heightened odds of a Fed hike, though safe‑haven demand for Treasuries limited the decline.

European government bond yields moved higher. The German Bund 10‑year yield reached a 17‑year high of 3.539% (up 2.4 bp to 3.528%), while the UK gilt 10‑year yield climbed to a 19‑year high of 5.413% (up 5.7 bp to 5.400%). ECB Executive Board member Isabel Schnabel warned that recent energy price moves are “quite concerning,” and Governing Council member Peter Kazimir said inflation risks are “clearly tilted to the upside,” leaving the door open for further rate hikes. Markets now price a 67% chance of a 25‑basis‑point ECB increase at the October 29 meeting.

US Stock Movers

Chip and AI names fell sharply, with the iShares Semiconductor ETF (SOXX) down nearly 5%. Teradyne (TER) led losers, dropping over 10%, while Marvell Technology (MRVL) fell more than 9%. Additional decliners included Arm Holdings (ARM), Lam Research (LRCX), SanDisk (SNDK), Intel (INTC), Micron Technology (MU), Advanced Micro Devices (AMD), ASML Holding NV (ASML), Seagate Technology (STX), KLA Corp (KLAC), Western Digital (WDC), and Nvidia (NVDA), which fell over 3% in the Dow.

Software firms rose after the AI‑development slowdown announcement. Thomson Reuters (TRI) and Intuit (INTU) gained more than 5%, ServiceNow (NOW) climbed over 4%, Adobe Systems (ADBE), Autodesk (ADSK), and Workday (WDAY) rose over 3%, and Atlassian Corp (TEAM) and Salesforce (CRM) advanced over 2%.

Cybersecurity stocks also gained. CrowdStrike Holdings (CRWD) led with an over 8% rise, SentinelOne (S) jumped more than 5%, Zscaler (ZS) and Palo Alto Networks (PANW) advanced over 4%, and Cloudflare (NET), Fortinet (FTNT), and Okta (OKTA) rose over 3%.

Energy producers benefited from the oil rally. APA Corp (APA) rose over 3%, Diamondback Energy (FANG) and Marathon Petroleum (MPC) gained over 2%, and Chevron (CVX), ConocoPhillips (COP), Devon Energy (DVN), ExxonMobil Holdings (XOM), Occidental Petroleum (OXY), Phillips 66 (PSX), and Valero Energy (VLO) were up more than 1%.

Hewlett Packard Enterprise (HPE) fell over 9% after Evercore ISI downgraded the stock to “inline” from “outperform,” citing valuation concerns. Corning (GLW) declined more than 8% following a $2 billion equity distribution agreement with Goldman Sachs.

Definium Therapeutics (DFTX) rose over 6% after a late‑stage trial of its anxiety pill met primary and key secondary endpoints.

Earnings Reports (9/14/2026)

Liberty Live Holdings (LLYVK).

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