Dow Jones Industrial Average futures slid 179 points, or 0.4%, while S&P 500 and Nasdaq-100 futures dropped further as investors weighed a shakeup in AI IPO plans and a fresh jump in oil prices. OpenAI ruled out a 2026 listing and Anthropic's chief called for slower AI development, while Saudi Arabia's closure of a key pipeline added to a rally that had already pushed crude above $100 a barrel last week.
Stock futures fell Sunday night as traders monitored a major shakeup in the pipeline for artificial intelligence initial public offerings alongside a fresh jump in oil prices. Dow futures slid 179 points, or 0.4%, while S&P 500 futures lost 0.6% and Nasdaq-100 futures tumbled 1.2%.
AI IPO plans shift abruptly
OpenAI CEO Sam Altman said in an interview published Saturday that the company would not go public this year, calling an IPO ill-advised just one month after OpenAI CFO Sarah Friar said the company would list by 2027 at the latest. Anthropic CEO Dario Amodei, meanwhile, wrote in an essay Saturday that AI companies need to slow the pace of innovation on their best models because of safety risks. He told CBS News on Sunday that the toughest dilemma with such a plan is what happens if China does not follow suit.
Sen. Ruben Gallego, D-Ariz., raised the concern on CNN's "State of the Union" Sunday: "Dr. Frankenstein is telling us the monster is escaping", he said, adding that the current response is not meeting the moment. The push for lawmakers to act followed a researcher's resignation from Anthropic and a warning that the technology could pose existential risks by the end of the decade.
The AI boom has propelled the stock market to new heights and driven heavy corporate spending on technology infrastructure in recent years, but the weekend's developments suggest the scale of the expected public-market benefit from AI efficiency gains and IPOs could be less certain than previously believed.
Oil jumps on Saudi pipeline closure
Oil prices rose more than 2% Sunday night after Saudi Arabia shut a key pipeline that bypasses the Strait of Hormuz. WTI crude futures added 2.3% to $102.38 a barrel, while Brent crude climbed 2.3% to $107.02 a barrel. U.S. crude had already broken above $100 a barrel last week for the first time since May amid escalating conflict in the Middle East.
A losing week, and the Fed ahead
Last week's oil rally dragged on the major averages: the Dow slid 1.6%, its biggest weekly loss since March, while the S&P 500 and Nasdaq Composite shed about 0.8% and 0.7%, respectively.
The Federal Reserve holds its September policy meeting this week. Traders are pricing in a roughly 86% likelihood of a rate hike, according to CME's FedWatch tool. No major earnings reports or economic releases are scheduled for Monday.
Source: CNBC
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