U.S. stocks fell on Monday, led by losses in Nvidia and other chipmakers after executives at major AI companies voiced safety concerns around artificial intelligence development. The benchmark 10-year Treasury yield briefly moved above 5%, adding to investor unease ahead of a Federal Reserve meeting. Persistently high inflation and rising borrowing costs also weighed on sentiment.

U.S. stocks fell on Monday as chipmakers including Nvidia slid after executives at major AI companies called for a slowdown in AI development over safety concerns. The 10-year Treasury yield climbed above 5% for the first time since 2023, adding to jitters ahead of a Federal Reserve policy meeting. Worries about U.S. fiscal health and Middle East energy supply also weighed on sentiment.

Major U.S. stock indexes fell on Monday, led lower by AI-related shares. Industry leaders voiced concerns about AI safety risks and urged a slowdown in development, prompting investors to reassess the sector. Nvidia dropped 3% and Amazon fell more than 1%, while chipmakers such as Intel and AMD also slid. Defensive areas including consumer staples and healthcare proved more resilient.

AI-related stocks saw sharp declines, with Nvidia shares down 3% and tech stocks weakening across global markets. Anthropic CEO Dario Amodei urged slowing AI development to curb potential misuse, while OpenAI CEO Sam Altman put off an IPO this year, citing safety concerns. The warnings added to investor doubts about the AI sector’s outlook.

Nasdaq 100 futures fell in early trading on Monday, pressured by a selloff in AI-related stocks. Safety-focused calls from industry figures including Elon Musk and Sam Altman to pause AI model development weighed on sentiment. Nvidia slid more than 2% and Amazon fell 1%, while other chipmakers such as Intel, AMD and Marvell Technology also weakened. Analysts said the tech-sector pullback could influence the tone heading into the Federal Reserve’s upcoming rate decision.

Concerns over global energy supplies intensified after a Saudi pipeline closure, pushing Brent crude futures up 2.6% to USD 107.36 per barrel and WTI up 2.4% to USD 102.48. Asian equities broadly came under pressure, with Japan’s Nikkei 225 down 0.59% and South Korea’s Kospi opening 3.45% lower, while Hong Kong’s Hang Seng Index and China’s CSI 300 also slipped. Gold edged down to USD 4,336 an ounce as rising bond yields weighed on the non-interest-bearing asset.

Global markets were roiled as AI-linked stocks fell and oil prices jumped. The selloff followed calls by leaders at OpenAI and Anthropic to slow AI development, citing risks to humanity. In the Middle East, attacks on Saudi oil infrastructure and Gulf shipping routes lifted Brent crude by nearly 3%, intensifying worries about persistent inflation. Investors also stayed cautious amid the prospect of U.S. and Japanese interest-rate increases.

Dell CEO Michael Dell is leading a take-private bid for insurance distributor Baldwin Insurance Group through his family office, DFO Management, alongside Sequence Holdings. The group is discussing an offer of $32.50 per share, valuing the deal at about $7.7 billion, a roughly 10% premium to the prior close. Talks are in the late stages. Baldwin, based in Tampa, has recently posted sharp quarterly gains in both earnings and revenue.

The dollar was steady on Monday, while the yen edged toward a seven-month high as markets prepared for interest-rate decisions from the Federal Reserve and the Bank of Japan this week. Oil prices climbed above $100 a barrel as the prolonged U.S.-Israeli conflict involving Iran kept markets on edge, triggering bond selloffs and reshaping rate expectations. Attention is on the Fed’s decision on Wednesday and a widely discussed possible BOJ hike on Friday, after the European Central Bank raised rates and signaled more to come. The Bank of England is expected to hold rates on Thursday, though the vote is seen as a close call.