S&P 500 futures fell 0.3%, Nasdaq futures fell 0.3%.

Investor Michael Burry said OpenAI, Anthropic and other AI executives urging a slowdown in model development are acting out of self-interest. He gave four reasons: he does not view chatbots as a pathway to AGI so sees no need to curb progress; a slowdown would advantage incumbent AI giants and hinder smaller rivals; portraying AI as an extinction-level threat fuels hype that can support IPO activity; and deliberate deceleration can be used to mask an inability to control growth. Burry added that LLMs such as Claude and ChatGPT will not deliver true reasoning capabilities, at least for now. He has shorted several AI companies this year and warned of overinvestment in AI infrastructure, aggressive accounting, hidden leverage and circular trading.

The benchmark 10-year US Treasury yield rose above the key 5% level on Monday for the first time in nearly three years ahead of this week’s Federal Reserve meeting, as markets priced a greater likelihood of Fed hikes to curb inflation. Friday’s data showed US CPI accelerated in August, intensifying those expectations. Tom di Galoma, managing director at Mischler Financial, said this “may be the straw that breaks the camel's back.” Yields have climbed over the past month amid higher rate bets, increased corporate and government debt issuance, a firmer growth outlook and concern over the US long-term fiscal path. Di Galoma added: “Our budgets, deficits and overall debt profile continue to expand.” Whether the 10-year can hold above 5% will be a key test of if the economy and equity markets can sustain higher rates.