U.S. stocks started the week lower, while the dollar strengthened on foreign exchange markets. The move came as yields on key U.S. government bonds climbed to their highest level since October 2023 and oil prices remained well above $100 per barrel. Warnings from executives at major artificial intelligence companies about the risks of rapid AI development triggered a sell-off in stocks linked to the sector.
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Technology Stocks Move Lower
The tech-heavy Nasdaq Composite fell 0.56% to 26,186.41 points. The Dow Jones Industrial Average, which tracks 30 leading industrial companies, lost 0.29% and closed at 53,421.20 points. The broader S&P index declined 0.48% to 7,619.98 points.
Semiconductor stocks were among the biggest losers. Chipmakers have benefited from exceptionally strong demand for advanced processors driven by massive investment in AI data centers. The PHLX Semiconductor index fell 5.86% during the session. Nvidia, the dominant producer of AI chips, lost 3.36%, while shares of Broadcom and AMD dropped 4.77% and 4.4%, respectively.
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Dollar Benefits From Lower Risk Appetite
Investors’ reduced willingness to take on risk following the AI warnings and a sharp rise in oil prices supported the dollar, which is typically viewed as one of the safer assets during periods of market uncertainty.
The U.S. Dollar Index, which measures the dollar against a basket of six major currencies, was up nearly 0.33% at 99.45 points at around 9:45 p.m. CEST. Against the Japanese yen, the dollar gained 0.52% to 154.349 JPY. The euro fell 0.43% against the dollar to $1.1548.
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Source: ČTK
