AI supply chain sells off as builders call for a slower pace of frontier development

An AI-linked basket fell 4.16% while the S&P 500 stripped of AI names rose 0.45%, as the S&P 500 closed down 0.47% at 7,621 and the 10-year Treasury yield briefly touched 5%

Deepakshi

Kristal Research & Marketing team

15 Sept2 min

Key takeaways — AI summary

The S&P 500 fell 0.47% to 7,621, the Nasdaq 100 lost 0.82% to 29,127 and the Dow slipped 0.31% to 52,412 after Anthropic's Dario Amodei, backed by Sam Altman, Elon Musk and Demis Hassabis, called for a slower pace on frontier AI models.
The market split in two: an AI-linked basket dropped 4.16% while the S&P 500 excluding AI names gained 0.45%; chipmakers, memory, optical networking and data-centre suppliers were hit while cybersecurity and software rallied, with CrowdStrike up 14.41% and Corning the worst faller at -14.12%.
Asia took it harder, with SoftBank down 11.2%, SK Hynix -5.3%, Kioxia -6%, Samsung -2.8% and South Korea's Kospi the worst major index at -2.5%.
The 10-year Treasury yield crossed 5.00% for the first time since 2023 before returning to 4.959% as buyers stepped in; oil rose then eased, with WTI settling at $101.39 after a drone strike shut Saudi Arabia's East-West pipeline carrying 2-4 million barrels a day.
China's August factory output rose 5.2% versus 4.8% expected, but retail sales grew just 0.4% against 0.8% expected and fixed-asset investment fell 7.2% over eight months, showing production holding up as demand lags.

Generated by Kristal AI · reviewed by the research desk

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