In premarket trading, major chip stocks experienced declines, with Intel dropping nearly 6%, Marvell Technology falling over 7.4%, and Advanced Micro Devices slipping over 5%. This downturn follows statements from AI leaders, including Anthropic CEO Dario Amodei, who urged for a slowdown in AI capabilities due to safety concerns.
Conversely, energy stocks saw gains, with the State Street Energy Select Sector SPDR ETF (XLE) rising more than 1.2% as oil prices increased amid escalating tensions in the Middle East. Companies like Diamondback Energy, APA, Marathon Petroleum, and EOG Resources each advanced by about 2%.
Additionally, cybersecurity stocks rose broadly, with Palo Alto Networks up more than 4% and CrowdStrike increasing by 5.4%, as concerns about AI safety prompted a flight to security solutions. On the other hand, shares of Hewlett Packard Enterprise fell over 7% due to the same AI safety concerns, while Super Micro Computer's stock dipped more than 5%.
Affirm's shares rose over 2.1% following an upgrade from Wolfe Research, which identified a buying opportunity after the stock's recent decline post-earnings