Chipmakers Slide as AI Leaders Back Slower Development – US Market Wrap

A sharp selloff in semiconductor stocks weighed on US equities after several leading artificial-intelligence executives backed slowing development of the most advanced AI systems. Elevated oil prices added to pressure on sentiment ahead of the Federal Reserve’s policy decision.

Nvidia and Broadcom were among the biggest casualties, sending a key semiconductor index down 5.9%, while the Nasdaq 100 fell 0.8%. Financial shares also weakened, led by Bank of America following a warning on trading revenue. Brent crude climbed above $105 a barrel, intensifying inflation concerns, while the 10-year Treasury yield hovered near 5%.

Anthropic CEO Dario Amodei called for development of the most advanced AI systems to be slowed to reduce the risk of the technology moving beyond human control, with the proposal receiving support from OpenAI CEO Sam Altman and SpaceXAI CEO Elon Musk. Microsoft’s AI researchers separately released new principles placing limits on the company’s development of cutting-edge models.

Trump pushed back against calls for tighter AI safeguards, criticizing Amodei and arguing that slowing US development would benefit China.