Brendan McDermid | Reuters
Dow Jones Industrial Average futures slid 179 points points, or 0.4%. S&P 500 futures lost 0.6%, while Nasdaq-100 futures tumbled 1.2%.
OpenAI CEO Sam Altman said in an interview published on Saturday that the AI startup would not go public this year. Altman said an IPO for the ChatGPT maker would now would be “ill-advised,” just one month after OpenAI CFO Sarah Friar said it would go public by 2027 at the latest.
Dario Amodei, CEO of rival Anthropic, said in an essay on Saturday that AI companies need to slow the pace of innovation for their best models due to safety risks. Amodei told CBS News on Sunday that the “toughest dilemma” about such a proposal is what would happen if China did not do the same.
The AI boom has propelled the stock market to new heights and catalyzed a massive wave of corporate spending on technological infrastructure in recent years. However, this weekend’s developments could indicate that the size of the positive impact to the public market expected through increased efficiency and a string of major IPOs could be less clear than previously believed.
Eyes on oil
Last week’s rally in oil prices dragged on the three major stock averages. The Dow slid 1.6%, marking its biggest weekly loss since March. The S&P 500 and Nasdaq Composite shed about 0.8% and 0.7%, respectively.
The Federal Reserve gathers for its September policy meeting this week. Fed funds futures traders are pricing in a roughly 86% likelihood of a rate hike, according to CME’s FedWatch tool.
“The investor playbook from here depends on whether Fed hikes or long rates are the dominant driver of today’s tighter rates environment,” said Julia Hermann, global market strategist at New York Life Investment Management.
There are no major earnings reports or economic releases expected on Monday.
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