Another sudden reversal for high-flying artificial-intelligence stocks sent Wall Street reeling. The S&P 500 fell 0.3% Tuesday after careening between an early gain of 1% and a midday loss of 2.3%. The Dow Jones Industrial Average edged up 0.2%, and the Nasdaq composite sank 1%. Indexes swung lower after companies selling computer chips, memory and other building blocks of the AI boom broke from early gains to losses. The drops for AI stocks drowned out the benefit of lower oil prices, and most stocks in the S&P 500 rose. Treasury yields edged lower in the bond market.
S&P 500 drops 2% as artificial-intelligence stocks resume their sell-off.
Humanoid robots struggling with tasks like grasping a cup have a new teacher — a person wearing an ultrasound wristband that captures the movement of muscles, tendons and ligaments beneath the skin. Researchers at the Massachusetts Institute of Technology developed the tool to collect data of human hand motion that could eventually help robots achieve the dexterity that has been difficult for machines to master. As much of the tech world is still captivated with artificial intelligence assistants that are taking on computer-based tasks, the researchers are among the scientists trying to imbue AI with more sensory data from the physical world.
OpenAI has filed preliminary paperwork to potentially become a publicly traded company. The company announced Monday it has submitted confidential documents to the U.S. Securities and Exchange Commission. OpenAI says it hasn't decided on timing yet, as there are advantages to staying private. This move follows Anthropic's June announcement of its own IPO plans. Both companies are following SpaceX, which is also pursuing an IPO. OpenAI CEO Sam Altman mentioned last fall that an IPO was the “most likely path” due to the company's size and capital needs.
Wall Street held steadier and recovered some of its sell-off from last week. Oil prices, meanwhile, rose Monday following fighting between Israel and Iran, but they pared their biggest gains. The S&P 500 added 0.3%, coming off its 2.6% drop from Friday that was its worst since October. The Dow Jones Industrial Average dipped 0.2%, and the Nasdaq composite climbed 0.9%. Some of the best performers were companies that sell computer chips, memory and other products fueling the AI boom. They had plunged Friday amid worries that their prices had shot too high amid AI euphoria.
Apple is unveiling new artificial intelligence features at its annual developers conference. The World Wide Developers Conference started Monday. It's the last one featuring CEO Tim Cook before he turns his post over to John Ternus in September. The conference attracts thousands of developers from some 65 countries to Apple’s Silicon Valley headquarters. It usually focuses on software, in contrast to the fall unveiling of the latest iPhones. Apple showed off updates on new AI features, including upgrades to its Siri assistant. Apple says it's focusing on day-to-day use and privacy.
The upcoming World Cup will feature 48 teams and 104 matches across the United, Mexico, and Canada. It also presents a massive security challenge. The World Cup involves more countries and games than ever before, and it kicks off next week amid global tensions and mounting political violence. In the U.S., a vast network of federal agencies, local police, and private entities will manage security. They'll use advanced tools such as hunter drones and artificial intelligence-powered cameras to secure stadiums and fan zones. Officials are confident in their preparations despite concerns about drones and AI misinformation.
The U.S. stock market had its worst day since October as a sell-off in big technology companies weighed down the broader market. Bond yields surged as a strong jobs report boosted expectations that the Federal Reserve will be forced to hike interest rates at some point this year. The S&P 500 slumped 2.6% Friday, finishing with its first losing week in the last 10. The Dow Jones Industrial Average fell 695 points, or 1.4%. The Nasdaq composite fell 4.2%. Nvidia and Broadcom were among the heaviest weights on the market. The Labor Department reported that employers added 172,000 jobs in May, roughly double what forecasters had expected. Oil prices fell.
Anthropic is proposing that top AI companies coordinate a way to pause the development of advanced AI systems if they become too dangerous. The company behind the Claude chatbot says the technology is improving so quickly that there's a risk humans could lose control. In a blog post Thursday, Anthropic suggests giving the world an “option” to slow or temporarily pause AI development. The company plans to research ways to implement this pause, noting that AI models are getting faster, doubling their task capabilities every four months. This rapid advancement could lead to AI designing its own successors, raising control concerns.
Television and movie actors have voted to ratify a four-year contract with studios and streaming services. This comes after union leaders negotiated protections against synthetic actors created by artificial intelligence. The ratification was widely expected, and a strike like the one in 2023 never seemed likely during the drama-free negotiations. More than 90% of Screen Actors Guild-American Federation of Television and Radio Artists members approved the agreement. The new deal, like on recently reached by Hollywood writers, is for four years instead of the usual three. This provides extra labor stability in the industry. The contract includes provisions to keep the use of AI actors minimal.