European stocks opened lower on Monday as technology shares came under heavy selling pressure following calls from leading artificial-intelligence executives to slow the development of advanced AI systems, while another rise in oil prices added to inflation concerns.
The pan-European STOXX 600 fell in early trading, while the technology sector dropped more than 2%, making it one of the session’s weakest performers. The declines followed losses across Asian technology stocks and a drop in U.S. technology futures.
AI Safety Debate Hits European Chip Stocks
Technology shares came under pressure after Anthropic Chief Executive Dario Amodei called over the weekend for frontier AI companies to coordinate on slowing the pace of development and strengthening safety measures. OpenAI Chief Executive Sam Altman subsequently backed calls for greater safety coordination.
The comments raised concerns among investors that a slower pace of AI development could eventually translate into weaker spending on chips, data centers and other infrastructure that has supported technology-sector growth.
In Europe, semiconductor companies were among the hardest hit. Infineon and ASML fell sharply, while other AI-linked technology stocks also declined. Reuters reported that the STOXX 600 technology index was down about 2% in early trading.
The selloff extended beyond Europe. Nasdaq 100 futures dropped about 1.6%, while several U.S. semiconductor stocks were indicated sharply lower before the opening bell.
Oil Rally Adds Inflation Pressure
European equities were also pressured by another increase in energy prices after Saudi Arabia shut its strategic East-West crude pipeline following drone attacks.
Brent crude moved back above $108 a barrel, extending last week’s rally, as the pipeline shutdown disrupted an important alternative route for Saudi oil exports that bypasses the Strait of Hormuz.
The rise in crude prices has renewed concerns that higher energy costs could keep inflation elevated and force major central banks to maintain tighter monetary policy for longer.
Energy stocks benefited from the increase in oil prices, partially offsetting weakness in technology and other sectors.
Markets Face Two Sources of Uncertainty
Monday’s trading highlights two separate pressures facing European equities: renewed uncertainty over the pace of investment in the global AI industry and an energy shock stemming from continuing disruptions in the Middle East.
The AI debate is particularly relevant for European semiconductor companies such as ASML and Infineon because expectations for sustained spending on AI computing infrastructure have been an important source of demand for the global chip industry.
At the same time, higher oil prices are increasing concerns about inflation just as central banks assess the path of interest rates. The European Central Bank raised rates by 25 basis points last week as policymakers responded to renewed inflationary pressures.
The combination left European technology shares among Monday’s biggest decliners, while higher crude prices provided support for the energy sector.
