Nasdaq Futures Slip Over 1.5% as Oil Rallies and AI Shares Falter

US equity futures opened the week on shaky ground. By early afternoon Indian time, the S&P 500 futures were off about 0.7%, the Dow about 0.2%, and the Nasdaq futures had tumbled a full 1.5%.

What’s behind the dip? Two things, really – a jump in oil prices and a sudden chill in the AI hype train. Brent crude surged close to 3% after reports of fresh strikes on Saudi facilities and a bold attack on a Saudi pipeline, while Yemen’s Houthi rebels threatened further disruption in the Gulf.

Brent’s rally isn’t a one‑day wonder; it’s up roughly 9% over the past week, and US crude followed suit, climbing to just above $102 a barrel.

At the same time, the AI sector got a reality check. Leaders from OpenAI and Anthropic, two of the biggest names in the field, publicly urged a pause in the rapid rollout of new models, citing safety and ethical concerns. Their caution sent a ripple through AI‑linked stocks, which slipped noticeably as investors reassessed risk.

Adding another layer of uncertainty, markets are bracing for potential interest‑rate hikes. The U.S. consumer‑price data released on Friday has the Fed’s odds of a 25‑basis‑point increase this Wednesday sitting around 86%, with another move possibly slated before year‑end – the first tightening since mid‑2023.

Across the Pacific, Japan’s Nikkei fell about 1%, while South Korea’s benchmark dropped a sharper 3.2%, both markets echoing worries over the slowing AI momentum.

In the Middle East, a scheduled meeting in Oman that was meant to discuss reopening the Strait of Hormuz was postponed, keeping geopolitical tensions high.

India’s markets, meanwhile, were closed for Ganesh Chaturthi, leaving local investors to watch the overseas action from the sidelines.

All told, a mix of higher oil, AI safety debates and looming rate decisions created a perfect storm for US futures on Monday.