Safety first. That's the approach suddenly being taken by Anthropic CEO Dario Amodei and AI rivals Elon Musk and Sam Altman.
It's also the approach being taken by investors, who are dumping chip stocks and other AI plays to start the week. But it might be an overreaction to Amodei's calls for a slowdown in the pace of artificial-intelligence development. Of course, we at Barron's might be wrong as we were about SpaceX.
The market's flight to safety is unusual-go-to haven gold is falling and Treasury yields are unmoved, yet Bitcoin and software stocks are on track to be the day's big winners. Nvidia stock is another left-field idea for a safer bet, it's better placed than chip rivals if AI progress slows.
On top of the tech turmoil, Brent crude prices have jumped to $107 a barrel after Saudi Arabia shut a key oil pipeline as fighting in the Middle East escalates. The 10-year Treasury yield is at 4.97%, and the Federal Reserve is expected to raise interest rates on Wednesday.
Against that backdrop, the AI slowdown calls may just be the excuse the stock market needed.
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📈 Here's what's happening in markets today:
Tech stocks are sliding after AI CEOs call for a slowdown.
Intel, AMD, Marvell, and more stocks that explain today's market.
Why Nvidia could be the best chip bet.
AI stocks are tumbling. 3 reasons not to panic.
Tesla stock drops as Elon Musk adds to the chorus of AI concern.
HPE stock is downgraded after rising 159% this year.
Micron sinks again. What AI safety fears mean for memory chips.
🎙? Be sure to tune in to today's Barron's Live
The Federal Reserve meets this week against the backdrop of rising bond yields, a growing U.S. deficit, massive borrowing by AI companies, and inflation worries. Join Barron's Senior Managing Editor Lauren R. Rublin and Investor Circle Newsletter Editor Josh Schafer today at noon when they talk with Roger Hallam, global head of rates in Vanguard's fixed income group, about it. Sign up here.
🤖 Anthropic urges AI slowdown amid swarm threat
People developing artificial intelligence models joined Anthropic's CEO Dario Amodei in urging the industry to embrace a coordinated slowdown in AI development. Both OpenAI CEO Sam Altman and xAI's Elon Musk said they agreed with the sentiment. Amodei said he's worried that a year a from now an agent swarm could taking over the entire internet.
🏈 Prediction markets wage ad war over NFL season opener
Prediction markets used the start of the NFL season to launch an advertising blitz, largely on social media, starring everyone from LeBron James to Sydney Sweeney, and it isn't limited to DraftKings and Flutter's FanDuel, as they battle for share against Kalshi and Polymarket to sign up new customers early.
🍁 Canadian stocks are ignoring the U.S. trade war, for now
The Canadian stock market hasn't been bothered much by the country's deteriorating relationship with the U.S., even as the border trade war has escalated beyond tariffs to include the Trump administration's ban on some Canadian alcohol and cheese. Separately, Trump dropped a U.S. tariff on imported Irish whiskey after meeting with officials there.
🗓? Put it on your calendar
Every Monday morning Barron's publishes a rundown of what's coming up for investors in the week ahead. Don't miss out on earnings reports, inflation data, and anything that could move the markets. On the agenda:
Fed meeting starts Tuesday, decision due Wednesday
Lennar earnings
Bank of Japan rate decision Friday
📢 Local data center fights are reshaping the midterms
Data center opposition is on the rise, with a patchwork of local moratoriums and rezoning fights popping up across the United States. As the midterm elections approach, that backlash could push the issue from local actions into federal policy. Read more here.
📰 Don't miss out on our other newsletters
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Energy Insider : Nuclear Stocks Are Still Too Hot to Handle. How to Play It Safe.
View From the Circle : How to Buy Retail Stocks When Every Brand Is a Sinking Ship
Retirement : Is a Social Security Fix on the Way?
📈 The big story you missed this weekend
Cole Smead, CEO and a portfolio manager at Smead Capital Management and manager of the Smead International Value fund, has long favored value investing and concentrated portfolios. These days he's got his eye on stocks other than tech. Read more here.
💬 Quote of the day:
Other headlines moving markets:
A Fed rate increase is a done deal.
Saudi Arabia cuts key energy pipeline.
Boy, we were wrong about SpaceX.
Kalshi and Polymarket aren't public. Buy through these ETFs.
GE Vernova stock isn't all about orders.
RocketLab has something SpaceX doesn't.
Sweetgreen boosted after CDC declares end of the lettuce outbreak.
JPMorgan names two to head U.S. private bank.
5 warning signs the AI bubble is in its final stages.
This Apple supplier is having a winning streak.
Palantir puts its momentum on display.
Why a rate increase could actually be bullish.
GameStop CEO buys $20 million of stock.
If stripped-down investing makes you feel exposed, try this.
Gas prices push estimated Social Security raise higher.
Big pharma is pouring billions into China's biotechs.
-Edited by Liz Moyer, Stacy Ozol, and Patrick O'Donnell
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