Nasdaq Futures Slide 1.8% as AI Concerns and Oil Price Surge Weigh on Wall Street

US stock futures pointed to a weaker opening on Monday, September 14, as technology shares came under pressure and another sharp rise in crude oil added to an already uneasy inflation picture. The pullback arrived ahead of the Federal Reserve’s policy meeting, with markets increasingly expecting another increase in interest rates. 

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Nasdaq 100 futures fell 1.8%, reflecting the heavier selling in technology stocks. Futures linked to the S&P 500 were down 0.8%, while Dow Jones Industrial Average futures slipped 0.3%. 

The weakness followed a rebound on Friday, when the S&P 500 gained 0.9% and ended a four-session losing run. The Dow Jones and Nasdaq Composite had also finished that session around 1% higher. 

Nvidia, Intel and Marvell Fall in Pre-Market Trade 

Semiconductor stocks bore much of Monday’s early selling. Nvidia was down 3% in pre-market trading, Intel lost 6% and Marvell Technology dropped 7%. 

Other large technology companies were also trading lower before the opening bell, with Meta Platforms, Amazon, Alphabet and Microsoft all slipping. 

The fresh pressure on AI-linked shares followed a weekend discussion about the pace at which increasingly advanced artificial intelligence models are being developed. Anthropic chief executive Dario Amodei called for additional safeguards, including independent third-party evaluations, and urged the industry to slow work on its most advanced models. 

OpenAI chief executive Sam Altman supported the proposal, while xAI’s Elon Musk also agreed with Amodei’s position. Separately, Altman indicated that OpenAI would not pursue an initial public offering this year as the company concentrates on safety. 

The report also noted that US President Donald Trump has played down growing concerns around AI risks, leaving questions over how far companies may be willing to slow development while competition with Chinese rivals remains intense. 

Brent Crude Oil Up 4% in Brent Following Tensions in the Middle East 

However, technology is not the only cause of problems that could affect our future. Prices of crude oil increased yet again due to fears of disruptions in supplies from the Middle East. 

Brent Crude increased by 4% to $108.65 per barrel compared to around $72 per barrel before the start of the conflict in Iran at the end of February. West Texas Intermediate increased by 3.75% to $103.75 per barrel. 

This rise in price comes amid additional attacks from Iranian-sponsored Houthi militants. Saudi Arabia stopped its East-West pipeline following attacks on its oil infrastructure. 

The Houthis have been attacking Saudi Arabian oil facilities and ships in the Red Sea since more than one month ago. They also occupied Yemeni port of Mokha as well as an island next to the Bab el-Mandeb Straits – another alternative to the Strait of Hormuz. 

Fed Rate Decision Adds Another Layer of Uncertainty 

The rise in crude prices has fed into inflation concerns just as the Federal Reserve prepares for its policy decision. 

US government bonds were already under pressure following hotter-than-expected inflation data. The benchmark 10-year Treasury yield stood at 4.97%, close to the 5% level, as the bond-market sell-off continued. 

Higher energy prices and rising US government debt have added to that pressure in recent weeks. The US Treasury Department has expanded its bond buyback operations, although concerns in the bond market have persisted. 

Traders were assigning close to a 90% probability to a Federal Reserve rate increase on Wednesday. 

That leaves Wall Street facing pressure from several directions at once: weakness in major AI and semiconductor shares, crude oil above $100 a barrel and Treasury yields approaching 5%. Monday’s futures trade reflected that mix most clearly in the Nasdaq 100, where the decline reached 1.8% before the opening bell.