AM - Wall Street opened lower on Monday, with the Nasdaq Composite down 0.9% at 26,094.81.
The S&P 500 was off 0.6% at 7,612.15, and the Dow Jones was down 0.3% at 52,429.90 in morning trading.
Technology remained the main drag after leading AI executives called for a slower pace of model development on safety grounds.
Nvidia fell more than 3%, while Intel, AMD and Marvell dropped between 5% and 6%, pushing the Philadelphia Semiconductor Index down around 6%.
Software stocks moved the other way, with ServiceNow, Adobe and Workday gaining more than 3%.
Brent crude meanwhile climbed around 4% to above $108 a barrel following the shutdown of Saudi Arabia's East-West pipeline.
The combination of higher energy prices and persistent inflation has sharpened focus on Wednesday's Federal Reserve decision, with traders assigning close to a 90% chance of a rate increase.
Premarket - Wall Street was set for a sharply weaker open on Monday, with technology stocks bearing the brunt of selling as fresh concerns over the pace of artificial intelligence development collided with another surge in oil prices.
Nasdaq 100 futures were down around 1.7%, while S&P 500 futures slipped 0.7% and Dow futures fell roughly 0.4%. The Nasdaq mini contract was down more than 500 points shortly before the opening bell, while S&P 500 and Dow minis lost 55 and 199 points respectively.
Semiconductors led the retreat after Anthropic chief executive Dario Amodei called for the industry to slow development of its most advanced AI models, a position subsequently backed by OpenAI's Sam Altman and Elon Musk. Nvidia fell around 2% pre-market, while Intel, AMD and Marvell dropped between roughly 5% and 7%. Software and cybersecurity stocks proved more resilient, with CrowdStrike and Palo Alto Networks gaining.
Energy markets provided another headache. Brent crude surged above $109 a barrel after Saudi Arabia shut its East-West pipeline following drone attacks, intensifying fears that higher energy costs will keep inflation elevated.
That puts Wednesday's Federal Reserve decision firmly in focus. Traders were pricing an approximately 88% chance of a quarter-point rate increase after last week's inflation data, while the US 10-year Treasury yield hovered close to 5%.
The major indices are coming off a losing week, when the Dow dropped 1.6%, the S&P 500 fell 0.8% and the Nasdaq shed 0.7%.
