On the 17th, U.S. time, the three major New York stock indexes opened lower. It appears to be due to turmoil stemming from advances in artificial intelligence (AI) technology.
As of 10:29 a.m., at the New York Stock Exchange, the Dow Jones Industrial Average fell 259.63 points, or 0.52%, to 49,241.30 from the previous session. The Standard & Poor's (S&P) 500 fell 48.79 points, or 0.71%, to 6,787.38, and the Nasdaq composite fell 237.69 points, or 1.05%, to 22,308.98.
Analysts said investor sentiment has weakened as concerns over AI's impact on business models have persisted since last week. The disclosure by China's Alibaba of Qwen 3.5, a new AI model designed to independently carry out complex tasks, also appears to have played a role. There are concerns that Chinese AI corporations' technological advances could pose potential risks.
Stash Graham, chief investment officer (CIO) at Graham Capital Asset Management, said, "Alibaba's AI product is one of the variables weighing on the market today and part of a much larger dynamic," adding, "After last year's bull market, we are seeing a consolidation phase as the market catches its breath, and that is natural."
Iran also released that it would close the Strait of Hormuz, a key corridor for international crude shipments, for a set period on this day for military drills. The closure plan was released as talks between the United States and Iran, mediated by Oman over Iran's nuclear program, began in Geneva, Switzerland, that day. The United States is concentrating military power, including deploying a nuclear-powered aircraft carrier to waters near Iran. The Islamic Revolutionary Guard Corps Navy also began large-scale military exercises, including missile launches, in the Strait of Hormuz a day before the talks. However, tensions eased somewhat afterward as the United States and Iran reached a general understanding in the talks over the nuclear program.
Sectors such as communication services, materials and energy were weak, while financials and utilities were strong. Masimo shares surged more than 34% on news that Danaher was nearing a deal to acquire the U.S. medical technology corporations Masimo. Norwegian Cruise Line Holdings rose more than 8% after activist fund Elliott Management secured more than 10% equity. Paramount Skydance gained nearly 6% on news that Netflix would give Warner Bros. a seven-day window to allow Paramount to resume negotiations.