Equity index futures are lower to kick off the new trading week on mounting fear about runaway artificial intelligence growth, and higher oil prices with tension in the Strait of Hormuz.

Leaders in artificial intelligence and broader tech expressed concerns about the runaway growth of AI products, with Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman, and Tesla/SpaceX CEO Elon Musk making comments the industry may need to move more slowly. The news sent semiconductor stocks down and cybersecurity names up.

The Iranian military claimed it destroyed a U.S. drone over the Strait of Hormuz, according to reports. A diplomatic meeting between Iran and the Gulf Arab states, scheduled to take place Monday in Oman, was postponed. Meanwhile, due to damage sustained in an attack, Saudi Arabia shuttered its East-West pipeline, which can carry roughly 7 million barrels per day of crude, according to reports. U.S. oil futures were up more than 3% Monday.

Investors are bracing for FOMC announcement Wednesday, with expectations for the Fed to hike rates. Earnings and economic data are light today, with Dave and Buster’s (PLAY) reporting earnings in today’s postmarket.

Snapshot

• Oil (/CL) – Oil futures are up about 3.38% to near $103.43 per barrel
• Gold (/GC) – Gold futures are down 1.89% to 4,325.80 per ounce
• Bitcoin (/BTC) – The cryptocurrency futures are up about 0.57% near 77,940
• VIX (/VIX) – The CBOE Volatility Index is up 11.62% to 17.68
• U.S. Dollar (/DX): Dollar futures are up +0.39% at around 99.509

Big Premarket Movers

Advancers:

• CrowdStrike Holdings (CRWD) 5.25%
• Palo Alto Networks (PANW) 4.94%
• ServiceNow (NOW) 4.88%
• Cognizant Technology Solutions (CTSH) 3.33%
• Salesforce (CRM) 2.95%

Decliners:

• Corning (GLW) -9.01%
• Marvell Technology (MRVL) -7.67%
• Lam Research (LRCX) -7.45%
• Hewlett Packard Enterprise (HPE) -7.39%
• Lumentum Holdings (LITE) -7.07%

Economic Data (ET)

• 11:30 AM: 3- and 6-Month Bill Auction

Notable Earnings

• Premarket: n/a
• Postmarket: Dave & Buster’s Entertainment (PLAY)
• Premarket Tuesday: n/a
• Postmarket Tuesday: Trip.com (TCOM)

Upgrades/Downgrades

• JPMorgan upgrades Iren (IREN) from Underweight to Overweight
• Wolfe Research upgrades Affirm (AFRM) from Peer Perform to Outperform
• UBS upgrades Allegiant Travel (ALGT) from Neutral to Buy
• Rothschild & Co Redburn upgrades Chime Financial (CHYM) from Neutral to Buy
• Wells Fargo downgrades Accenture (ACN) from Overweight to Equal Weight
• Evercore ISI downgrades Hewlett Packard Enterprise (HPE) from Outperform to In Line
• Melius Research downgrades GE Aerospace (GE), TransDigm (TDG), Heico (HEI), Honeywell Aerospace (HONA) and Woodward (WWD) from Buy to Hold from Buy to Hold
• Baird downgrades Nike (NKE), Dick's Sporting Goods (DKS), VF Corp. (VFC) and Rocky Brands (RCKY) from Outperform to Neutral

For this week's economic and earnings calendars, see Week Ahead: Fed Interest Rate Decision and Heavy Economic Data.

Also see Week in Review: Tech Cuts Stock Losses; Inflation, Fed Center Stage

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