US stocks slip as AI safety concerns, weak data weigh on sentiment

Seven of the 11 primary S&P 500 sectors closed in negative territory, with energy and materials pacing the laggards by falling 0.89 per cent and 0.55 per cent, respectively. — AFP pic

First Published: Wednesday, 30 Sep 2026 10:32 AM MYT

NEW YORK, Sept 30 — United States (US) stocks ended lower on Tuesday as investor enthusiasm for AI encountered headwinds from emerging safety warnings and economic data weighed on broader market sentiment, reported Xinhua.

The Dow Jones Industrial Average fell 131.59 points, or 0.26 per cent, to 51,349.92. The benchmark S&P 500 dipped 12.85 points, or 0.17 per cent, to 7,670.84; the tech-heavy Nasdaq Composite Index shed 22.84 points, or 0.09 per cent, to finish at 26,797.54.

Seven of the 11 primary S&P 500 sectors closed in negative territory, with energy and materials pacing the laggards by falling 0.89 per cent and 0.55 per cent, respectively.

Bucking the downward trend, utilities and communication services led the gainers, advancing 1.14 per cent and 0.4 per cent, respectively.

The artificial intelligence sector faced renewed scrutiny following a Reuters report detailing a leaked draft initial public offering prospectus from AI developer Anthropic.

The document revealed that the company is seeking a valuation of up to US$2 trillion (RM8.15 trillion) while explicitly cautioning that advanced AI systems could pose existential risks to humanity.

Concurrently, rival research lab OpenAI reportedly shelved the release of its latest frontier model following safety concerns identified during internal evaluation.

The broader market for public listings showed signs of strain amid surging government bond yields.

Health technology firm Oura abruptly halted its planned market debut on Tuesday, citing heightened market uncertainty.

In commodity markets, crude oil benchmarks retreated as fears of supply disruption eased.

Saudi Arabia resumed crude transport via its key East-West pipeline, while US and Iranian representatives engaged through intermediary channels to restart diplomatic talks.

Upon settlement, Brent crude for November delivery hovered near US$102.6 per barrel, while West Texas Intermediate crude traded at US$89.38 per barrel.

On the macroeconomic front, the Conference Board reported that US consumer confidence dropped to its lowest level since 2014.

In the labour market, the Job Openings and Labour Turnover Survey showed available positions fell to 7.097 million in August, down from a revised 7.335 million in July and trailing market forecasts of 7.228 million.

Meanwhile, borrowing costs continued to climb alongside elevated US Treasury yields.

The average rate on a benchmark 30-year fixed-rate mortgage jumped eight basis points to 7.58 per cent on Tuesday, its highest level since November 2023.

The increase added further pressure to housing affordability ahead of Friday’s monthly nonfarm payrolls report. — Bernama-Xinhua