Wall Street warns trading boom is losing steam

Wall Street witnessed significant stock declines on Monday following warnings from leaders of Artificial Intelligence (AI) providers such as Anthropic and OpenAI. The outpouring of concerns triggered a sharp price drop in AI-related shares across Wall Street and other global exchanges on Monday. These leaders urged a slight slowdown in AI development to ensure safety.

Anthropic CEO Dario Amodei's argument was supported by OpenAI CEO Sam Altman and Elon Musk, the head of competitor xAI, in an essay published over the weekend. The resulting investor uncertainty led to immediate sell-offs. The fear of a drop in demand for AI technology sent shockwaves through Asian markets, causing Samsung's and SK Hynix's tech shares to drop by four and seven percent, respectively.

Softbank, an investor in OpenAI, also suffered a 11 percent loss. In Europe, the reactions were equally sharp. Munich-based semiconductor company Infineon saw its shares fall over seven percent at the opening bell of its trading week. Dutch chip manufacturer ASML closed more than six percent in the red.