AI stocks fall on slowdown calls as oil surge pushes Treasury yield to 5%

Global artificial intelligence stocks fell sharply on Monday after industry leaders called for a deliberate slowdown in development, while surging oil prices from Middle East conflict pushed the 10-year Treasury yield to 5% for the first time since 2023. Markets partially recovered as non-AI stocks gained and oil prices retreated from their intraday highs. The S&P 500 fell 0.5%, the Nasdaq composite dropped 0.6%, and the Dow Jones Industrial Average declined 152 points, or 0.3%. The losses were limited by gains in software companies like Intuit, Autodesk, and Adobe, which had previously fallen on fears of AI competition. More stocks rose than fell within the S&P 500. The sell-off in AI-related shares was triggered by a weekend essay from Anthropic CEO Dario Amodei, who called for a "deliberate and global slowdown" in AI development due to safety risks. He cited the potential for AI to lead a swarm of agents that could take over the internet within six to 12 months. OpenAI CEO Sam Altman supported the concept of a slowdown and said his company would likely wait until next year for a stock sale on Wall Street. Nvidia, a key AI chipmaker, sank 3.