Artificial intelligence development calls for a slowdown triggered a global sell-off in technology stocks on Monday, September 14, 2026, as investors worried about whether heavy spending in the sector can remain sustainable. The market surge has largely relied on artificial intelligence as its primary growth engine, pushing financial markets to record highs. In early trading, the tech-heavy Nasdaq Composite Index dropped roughly 1%, the S&P 500 declined 0.6%, and the Dow Jones Industrial Average fell 0.6%. Adam Crisafulli, head of investment advisory firm Vital Knowledge, noted that “pick and shovel” stocks supplying AI infrastructure and resources faced the steepest declines. David Royal, chief financial and investment officer at Thrivent, explained that markets are evaluating the pace of AI development and determining future winners and losers. While individual chip-maker stocks experienced heavy losses, Royal stated he was not overly alarmed by the session’s movements. Wall Street analysts reported that investors reacted to statements from major technology executives urging the industry to proceed more cautiously to mitigate potential risks. These warnings escalated after Anthropic CEO Dario Amodei released an essay over the weekend advising the industry to pace its frontier. In an interview with CBS News, Amodei stated that the industry had lied about AI risks for too long. SpaceX and xAI CEO Elon Musk alongside OpenAI CEO Sam Altman supported similar calls for caution. Because market gains have concentrated within a small group of tech firms, significant sector pullbacks threaten investor portfolios and American retirement accounts like 401(k) plans. Wall Street analysts suggest the AI rally could continue in the near term, though long-term risks are mounting. Capital Economics projects the S&P 500 to reach 8,250 by the end of the year, but anticipates the AI bubble could burst next year, triggering a decline exceeding 20% in the S&P 500 by the end of 2027. Crisafulli remains concerned about current spending velocities, though he noted that a sharp capital expenditure slowdown would not automatically cause a total market crash. He characterized the situation as nuanced, emphasizing that unsustainable spending levels do not imply that every AI-linked asset must ultimately suffer.
Source: cbsnews.com
