Nasdaq Falls 263 Points to 26,069.73 at Open as AI Slowdown Calls and $110 Oil Sink Chip Stocks 

Mumbai, Sept 14: The Nasdaq Composite (^IXIC) opened sharply lower and was trading at 26,069.73, down 263.30 points or 1.00%, as of 9:46:38 AM EDT on Monday, as a rare public appeal by the world’s three most prominent artificial intelligence leaders to slow frontier model development triggered a broad sell-off in semiconductor and AI infrastructure stocks. Brent crude surged past $110 per barrel after Saudi Arabia shut its 1,200-km East-West pipeline following drone strikes, while traders priced in an 88% probability of a Federal Reserve rate hike on Wednesday. The Dow Jones Industrial Average (^DJI) was at 52,439.06, down 134.23 points or 0.26%, the S&P 500 (^GSPC) stood at 7,611.71, down 45.27 points or 0.59%, and the Russell 2000 Index (^RUT) traded at 2,890.26, down 13.68 points or 0.47%. 

Nasdaq Opens Down 1% at 26,069.73 as Chip Stocks Bleed Heavily 

The tech-heavy Nasdaq Composite opened at 26,018.50 against a previous close of 26,333.04, briefly touching a session low of 25,992.54 before recovering marginally to a day’s high of 26,066.29. Volume stood at 1,048,069,000 shares, against an average volume of 8,801,200,967. The index’s 52-week range stands at 20,690.25 to 27,190.21. Intraday swings were pronounced: the index was down 1.22% or 317.04 points at 26,018.23 in one early print, recovered to 26,125.05, down 207.98 points or 0.79%, at 9:49:29 AM EDT, before settling near 26,069.73 in the latest reading. 

Also Read: What Is the New York Stock Exchange (NYSE)?  

Nasdaq-100 futures had fallen as much as 1.8% in pre-market trade, while S&P 500 futures dropped 0.8% and Dow futures slipped 0.3%. The weakness followed Friday’s rebound, when the S&P 500 snapped a four-session losing streak with a 0.9% gain and both the Dow and Nasdaq Composite added around 1% each. Monday’s decline extended a pattern in which the three major averages have opened either mixed or lower for six consecutive weeks. 

Dow Slips 134 Points to 52,439.06 as Defensive Names Cushion Fall 

The Dow Jones Industrial Average opened at 52,750.88 against a previous close of 52,573.29, trading between 52,385.52 and 52,750.88 during the opening hour. Volume stood at 63,330,631, against an average volume of 496,910,161, with the index’s 52-week range at 45,057.28 to 54,744.33. The blue-chip gauge’s relatively contained decline reflected a rotation into income-oriented sectors, with Verizon (VZ) up 1.26%, Walt Disney (DIS) up 1.52%, Coca-Cola (KO) up 1.67%, Procter & Gamble (PG) up 1.20%, Johnson & Johnson (JNJ) up 1.59%, Merck (MRK) up 0.63%, and UnitedHealth (UNH) up 1.34%. Chevron (CVX) added 1.34% as crude prices jumped. 

Salesforce (CRM) rose 2.51% and IBM (IBM) gained 1.03%, helping to limit the index’s losses. On the downside, Caterpillar (CAT) fell 3.61%, 3M (MMM) declined 1.62%, Honeywell (HON) dropped 1.81%, Goldman Sachs (GS) slipped 2.27%, and JPMorgan Chase (JPM) eased 0.92%. American Express (AXP) added 0.58%, Visa (V) gained 1.56%, and Travelers (TRV) rose 1.69%. 

S&P 500 Down 45 Points at 7,611.71; Energy Gains Offset Tech Losses 

The S&P 500 opened at 7,611.44 against a previous close of 7,656.98, trading between 7,596.33 and 7,611.68, with volume at 288,423,213 against an average of 5,190,367,419. The benchmark’s 52-week range stands at 6,316.91 to 7,816.70. Industrials bore the heaviest losses, with GE Vernova (GEV) down 7.75%, Eaton (ETN) down 7.39%, Caterpillar (CAT) down 3.41%, and GE Aerospace (GE) down 3.20%. Oracle (ORCL) declined 5.23%, Dell Technologies (DELL) fell 6.20%, and Hewlett Packard Enterprise (HPE) dropped 6.54%. In financials, Goldman Sachs (GS) fell 2.16%, Morgan Stanley (MS) declined 1.75%, and Citigroup (C) dropped 2.08%. 

Energy was the standout sector, with Exxon Mobil (XOM) up 1.74%, Chevron (CVX) up 1.32%, ConocoPhillips (COP) up 1.22%, and Valero Energy (VLO) up 2.07%. Consumer staples held firm, with Procter & Gamble (PG) up 1.16%, Philip Morris (PM) up 1.95%, and Altria (MO) up 2.84%. Healthcare names also advanced, led by AbbVie (ABBV) up 1.90%, Abbott Laboratories (ABT) up 1.71%, Eli Lilly (LLY) up 1.60%, and Bristol-Myers Squibb (BMY) up 1.48%. 

Russell 2000 Falls 13.68 Points to 2,890.26 on Chip Weakness 

The Russell 2000 Index opened at 2,896.70 against a previous close of 2,903.94, trading between 2,887.26 and 2,896.70 as of 9:32:55 AM EDT, with the 52-week range at 2,303.46 to 3,069.71. Small-cap semiconductor and equipment names mirrored the broader sell-off, with SiTime (SITM) down 7.97%, Ultra Clean Holdings (UCTT) down 8.01%, Amkor Technology (AMKR) down 7.06%, FormFactor (FORM) down 6.65%, Sanmina (SANM) down 6.65%, and Credo Technology (CRDO) down 6.60%. Power and energy infrastructure names were also weak, with Bloom Energy (BE) down 6.93%, Powell Industries (POWL) down 6.38%, and IES Holdings (IESC) down 6.19%. 

Among gainers, RUM Group (RUM) surged 16.49%, Zscaler (ZS) rose 8.87%, Qualys (QLYS) gained 7.81%, Tenable Holdings (TENB) advanced 7.21%, and SentinelOne (S) added 7.49%. Regional banks were mixed, with UMB Financial (UMBF) up 0.36%, Old National Bancorp (ONB) up 0.74%, Valley National Bancorp (VLY) up 0.65%, and Home BancShares (HOMB) up 0.82%, while FB Financial (FBK) slipped and Cadence Bank (CADE) traded lower. 

Anthropic’s Amodei Calls for AI Slowdown, Triggering 6-8% Chip Losses 

The principal trigger for the opening sell-off was a 3,800-word essay published over the weekend by Anthropic (ANTH.PVT) chief executive Dario Amodei, arguing that AI companies must slow the pace of improving their most advanced models. “Over the last few months, I have become convinced that fully addressing the risks requires even more prudence — not just investing in risk prevention, but pacing the rate of capabilities advancement so that risk prevention has time to keep up,” Amodei wrote. He said his company would introduce independent third-party evaluations and urged the wider industry to follow. Anthropic is a San Francisco-based artificial intelligence laboratory that develops the Claude family of large language models and competes directly with OpenAI and Google DeepMind. 

OpenAI (OPAI.PVT) chief executive Sam Altman endorsed the position in a post on X, stating, “We welcome a federal framework that sets consistent safety requirements for frontier AI,” and adding that “no amount of American competitive pressure should justify recklessness.” SpaceX (SPCX) and Tesla (TSLA) chief executive Elon Musk wrote, “Dario is right.” The unified stance placed the three leaders at odds with Wall Street, which has priced in uninterrupted acceleration in AI capability. Amodei’s intervention followed the resignation of an Anthropic researcher citing existential AI threats, and his citation of a July incident in which OpenAI’s models hacked AI and robotics startup Hugging Face. President Donald Trump, speaking in Ireland, said, “We’re leading China in AI. We’re the most sophisticated country in the world, and frankly, I want to keep it that way because whoever wins AI wins.” 

OpenAI Delays IPO to 2027; Anthropic Taps Nasdaq for $2 Trillion Listing 

In a related development, Altman told Fortune that OpenAI would not pursue an initial public offering this year, describing a listing as “ill-timed” amid safety concerns. OpenAI, the developer of ChatGPT, had confidentially filed for an IPO in June but does not plan to list until 2027. Separately, Anthropic has reportedly chosen the Nasdaq for its highly anticipated debut, following SpaceX in opting for the exchange over the New York Stock Exchange. Anthropic is expected to file its IPO paperwork within weeks and could list as early as this autumn, with reports suggesting a valuation approaching $2 trillion. The company has told key backers it will be profitable for a second consecutive quarter in the third quarter, according to the Financial Times. 

Brent Crude Hits $110 as Saudi East-West Pipeline Shut After Strikes 

Oil prices surged after Saudi Arabia shut its 1,200-km East-West pipeline that bypasses the Strait of Hormuz, following drone strikes launched from Iraqi territory that damaged the route. Brent crude traded between $108.65 and $109.56 per barrel, up roughly 4% to 5% for the session, against around $72 per barrel before the start of the Iran war in late February. US West Texas Intermediate rose to between $103.75 and $104.72 per barrel, up 3.75% to 4.7%.  

Also Read: How to invest in US stocks 

Prices gained about 9% last week and have climbed 20% over two weeks. Iran-backed Houthi rebels have captured the port city of Mokha and an island near the Bab el-Mandeb Strait, a crucial shipping route. The State Street Energy Select Sector SPDR ETF (XLE) climbed more than 1.2%, with Diamondback Energy (FANG), APA Corporation (APA), Marathon Petroleum (MPC), and EOG Resources (EOG) each advancing around 2%. 

Fed Rate-Hike Odds at 88% as 10-Year Treasury Yield Touches 4.97% 

The oil surge intensified inflation concerns ahead of the Federal Reserve’s two-day policy meeting concluding on Wednesday. Traders priced in roughly 88% odds of a rate hike, according to CME Group’s FedWatch tool, following Friday’s Consumer Price Index reading for August, which showed monthly prices rose 0.3% against expectations of 0.2%. Goldman Sachs chief US economist David Mericle wrote, “The report had little impact on our inflation view but pushed market pricing of a hike to nearly 90%, high enough that the FOMC will likely want to avoid the market reaction that would likely follow from remaining on hold.”  

The 10-year Treasury yield (^TNX) climbed to 4.97%, within 3 basis points of the 5% mark last crossed in 2023, while the 30-year Treasury yield (^TYX) hovered at 5.35%. Former Cleveland Fed president Loretta Mester said, “The probabilities in the market seem higher than I would necessarily assign at this point,” pointing to scepticism from New York Fed president John Williams and Fed governor Chris Waller. Fed chairman Kevin Warsh has emphasised he will not provide forward guidance. 

Nvidia Falls 3.63% as Intel, Marvell Lead Nasdaq 100 Declines 

Within the Nasdaq 100, Nvidia (NVDA) fell 3.63%, Broadcom (AVGO) dropped 3.96%, Micron Technology (MU) declined 6.18%, AMD (AMD) fell 5.90%, ASML (ASML) dropped 6.12%, and Intel (INTC) declined 6.25%. Lam Research (LRCX) fell 7.04%, Applied Materials (AMAT) dropped 6.99%, Marvell Technology (MRVL) declined 7.87%, Arm Holdings (ARM) fell 6.72%, KLA Corporation (KLAC) slipped 4.94%, Qualcomm (QCOM) eased 2.62%, and Texas Instruments (TXN) declined 2.74%.  

Also Read: What Are Fractional Shares? 

The software and cybersecurity segments provided a rare counterweight, with CrowdStrike (CRWD) up 8.15%, Palo Alto Networks (PANW) up 5.93%, Fortinet (FTNT) up 4.08%, Adobe (ADBE) up 3.68%, and Intuit (INTU) up 3.68%. Among consumer technology names, Netflix (NFLX) rose 2.38%, Meta Platforms (META) gained 2.06%, Alphabet (GOOGL) added 1.94%, and Booking Holdings (BKNG) advanced 2.94%. Tesla (TSLA) slipped 0.98% and Amazon (AMZN) fell 0.97%. 

Apple Edges Up 0.09% as Staples and Healthcare Attract Safe Flows 

Apple (AAPL) edged up 0.09% and Microsoft (MSFT) rose 0.23%, while Palantir (PLTR) was nearly flat at 0.01%. Consumer staples within the Nasdaq 100 posted solid gains, with Mondelez International (MDLZ) up 1.43%, Walmart (WMT) up 1.37%, Monster Beverage (MNST) up 1.15%, PepsiCo (PEP) up 1.06%, and Costco (COST) up 0.77%. AstraZeneca (AZN) gained 2.09%, Gilead Sciences (GILD) rose 0.92%, Amgen (AMGN) added 0.22%, and Regeneron Pharmaceuticals (REGN) rose 0.29%. Precious metals weakened, with gold futures declining 2.3% to $4,305 per ounce and spot silver falling more than 3% to $62.54 per ounce. Bitcoin traded around $77,600, up modestly over 24 hours, while the US dollar index rose 0.6% to 99.67. 

Inflation at 3.4% Outpaces 3.1% Wage Growth, Squeezing Households 

Consumer prices rose 3.4% in August from a year earlier, while average hourly earnings increased 3.1%, the weakest wage growth since May 2021. Heather Long, chief economist at Navy Federal Credit Union, said April marked the turning point after a lengthy stretch in which wage growth generally exceeded inflation. The squeeze is visible in spending patterns, with more shoppers shifting toward warehouse clubs and discount retailers. “People who used to shop at Whole Foods are now at Costco, Aldi, and so you can see that people are still really trying to stretch every dollar,” Long said, adding that the behaviour appears “almost across the income spectrum.” She added, “The frustration is real on inflation and affordability.” 

Early Premarket Movers: Chip Stocks Slide, Energy and Cyber Gain 

Before the opening bell, major chip stocks fell sharply after the AI slowdown appeal. Intel slid nearly 6%, Marvell Technology fell over 7.4%, and AMD slipped over 5%. Energy stocks climbed ahead of the open as crude rose, with the XLE up more than 1.2% and Diamondback Energy, APA, Marathon Petroleum, and EOG Resources each advancing around 2%. Cybersecurity stocks rose broadly as worries around AI safety increased, with Palo Alto Networks up more than 4% and CrowdStrike up 5.4%. Meta Platforms, Amazon, Alphabet, and Microsoft all edged lower in pre-market trade. Novo Nordisk rose 1.3% after announcing a rebrand to “Novo.” 

Novo Nordisk Rebrands to Novo; AstraZeneca Trial Miss Limits Downside 

Novo Nordisk (NVO) rose 1.3% after the Danish drugmaker announced a rebranding and said it will go by the name “Novo” going forward. The Copenhagen-listed company, which develops diabetes and obesity treatments, called the changes the beginning of a new chapter as it faces competition from Eli Lilly and pressure to deliver new blockbuster products. It announced a broader rebrand around the phrase “Lasting Health Starts Now.” Coming into Monday, Novo’s Copenhagen-listed shares were down 14% year-to-date. Separately, AstraZeneca’s London-listed shares rose 1.5% after the drugmaker said its breast cancer pill camizestrant, sold as Etcamah, failed to improve progression-free survival in a late-stage trial. RBC analysts called the result a “manageable setback,” while Citi said the miss had limited downside. AstraZeneca shares are down 15% year-to-date. 

Oracle Falls 5% as Ellison Cancels 50 Million Share Sale 

Oracle (ORCL) declined 5% amid the broader technology sell-off after the company announced that co-founder Larry Ellison cancelled his recently disclosed plan to sell up to 50 million shares, removing a potential overhang. The cancellation did little to offset pressure on enterprise technology names. The software sector was otherwise a bright spot, with the iShares Expanded Tech-Software Sector ETF (IGV) up 2%. Apple (AAPL) rose 3.8% to $332.37 in a big upside weekly reversal, clearing a $330.81 early buy point, with a $343.87 buy point from a flat base or cup pattern. Moderna (MRNA) fell 1.1% to $143.97 but bounced 5.4% on Friday, breaking a trendline in a consolidation that began with its 177% spike on 19 August. NetApp (NTAP) jumped 7.4% to $199.28 after Friday’s 8.5% spike. 

Oil Surge Fuels Inflation Fears Ahead of Wednesday’s Fed Decision 

The rise in oil prices added to inflation concerns as US Treasuries extended last week’s sell-off, pushing the benchmark 10-year yield closer to 5% after hotter-than-expected inflation strengthened expectations of higher interest rates. Inflation concerns stemming from the energy shock caused by the Iran war, along with rising US government debt, have fuelled a sell-off in government bonds. Despite expanded buyback operations by the US Treasury Department aimed at stabilising the bond market, the measures have done little to ease concerns among bond investors. President Donald Trump reiterated his call for the Fed to lower rates on Sunday. Fed policymakers meet on Tuesday and Wednesday, with the policy statement due at 2 p.m. ET Wednesday, followed by a press conference from chairman Kevin Warsh. 

Track the Federal Reserve’s policy statement on Wednesday and Chairman Kevin Warsh’s press conference for confirmation of the expected 25-basis-point move, with the 10-year Treasury yield at 4.97% as a key gauge. Monitor Brent crude above $110 per barrel and any further disruption to Saudi Arabia’s East-West pipeline, since sustained energy inflation could shift the Fed’s path. Watch whether Anthropic’s Nasdaq listing proceeds as planned and how AI safety frameworks evolve, given their bearing on semiconductor and data-centre supply chains. 

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