Chip stocks took a beating after the top names in AI called for slowing down model development — bad news for semiconductor investors in the short term, though most analysts think the selloff is overdone.

• Anthropic's Dario Amodei called for slowing down work on the most advanced AI models, and Sam Altman and Elon Musk backed him up.
• Investors worried that slower model work means fewer data centers and less demand for chips, sending the Philadelphia semiconductor index down sharply.
• Corning fell hardest, with Nvidia, Micron, Broadcom, AMD and TSMC's US shares all dropping too.
• Oil above $100 a barrel and government bond yields breaking 5% piled on, as Saudi Arabia shut a pipeline and Yemen's Houthis tightened their grip on another shipping chokepoint.
• Traders now see a Fed rate hike this week as close to certain, and are asking whether it is a one-off or the start of a new hiking cycle.

Outlook: Analysts at Bank of America, HSBC and UBS expect AI spending on chips, power and data centers to keep going, so the drop looks more like a mood swing than a real change in demand.