Tech stock selloff after AI leaders call for slowdown in development

AI-related stocks declined globally on Monday, following warnings from leading AI executives about the need for a slowdown in development to address safety concerns. This selloff was particularly evident among tech giants like Nvidia, which saw its shares fall by over 3%, and other chipmakers such as Micron Technology, down more than 5%. The broader Nasdaq Composite index dropped by 0.6% while the S&P 500 fell 0.5%.

The sell-off was exacerbated by Donald Trump's dismissive comments on social media, where he labeled calls for regulation of AI a "sick conspiracy" and suggested that only a strong leader could prevent misuse, implying his own leadership as sufficient guard against potential risks.

Meanwhile, the Australian sharemarket futures pointed to a 0.2% slide at the open, mirroring global trends. Despite these challenges, some non-AI-focused stocks showed resilience, such as Intuit, which gained 5.5%.