Concerns about the potential harms of AI intensified when Anthropic researcher Jacob Coxon resigned last week and said the "people building AI earnestly believe that it could kill us all by the end of the decade."
Still, some investors urged skepticism about doomsday pronouncements.
Michael Burry, known for his successful bets against the U.S. housing market in 2008, posted on X that the warnings were an attempt by major players to stifle smaller competitors.
Annex Wealth Management Chief Economic Strategist Brian Jacobsen also questioned if the statements were credible.
"The strongest arguments for caution are those grounded in evidence, not fear. We should be wary both of incumbent firms seeking to protect their position and of confident predictions about outcomes that no one can reliably quantify," Jacobsen said.
Still, losses in technology stocks could set the tone for markets ahead of a potential interest-rate hike later in the week, with traders pricing in a nearly 89% chance of a rate increase by the U.S. Federal Reserve, according to CME's FedWatch.
Sentiment was already weakened after data last week showed U.S. inflation was accelerating.
Oil prices are also trading at levels not seen since May. Brent crude futures LCoc1 rose 2.5% to $107.28 on Monday, while U.S. West Texas Intermediate crude futures CLc1 advanced 2.3% to $102.39.
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