Nasdaq Futures Slip Over 1.5% as Oil Rises and AI Stocks Falter Amid Safety Debate

US stock futures opened on a sour note on Monday afternoon, with the Nasdaq slipping about 1.5% and the broader S&P 500 down roughly 0.7%. Even the Dow Jones wasn’t spared, trimming 0.2% as traders braced for a potentially tighter monetary stance in both the United States and Japan later this week.

Oil, meanwhile, was the real rattle‑snake in the room. Brent crude jumped close to 3% after news of fresh strikes in Saudi Arabia and a series of attacks on vessels navigating the Gulf. An assault on a Saudi pipeline, coupled with a Houthi‑linked advance, sparked fresh worries about supply disruptions. Brent has already rallied nearly 9% over the past seven days, while US crude pushed past the $102 mark per barrel.

Adding to the unease, the heads of OpenAI and Anthropic – two of the most vocal players in the generative‑AI space – publicly urged a slowdown in AI development to better manage emerging risks. Their cautionary stance sent many AI‑linked equities tumbling, a move that reverberated across Asian markets where the Nikkei fell about 1% and South Korea’s benchmark dropped over 3%.

On the policy front, a fresh US consumer‑price report last Friday nudged market odds up to an 86% probability that the Federal Reserve will hike rates by a quarter‑point at its upcoming meeting, marking the first increase since mid‑2023. The same data also left investors eyeing another possible move by December.

In the Gulf, a meeting in Oman that was meant to bring Iran and Gulf Arab states together to discuss reopening the Strait of Hormuz was postponed, further feeding geopolitical jitters. Meanwhile, India stayed quiet on the trading floor as markets were closed for Ganesh Chaturthi.

All told, the confluence of rising energy prices, heightened geopolitical risk, and a growing debate over AI safety painted a cautious picture for global equities heading into the week.