Fed Rate Hike and AI Safety Fears Drag Dow Down 1.7% — SkimNews
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Wall Street ended a volatile week with the Dow down 1.7%, pressured by the Fed's first interest rate hike in three years and a heated AI safety debate sparked by Anthropic CEO Dario Amodei's call to slow frontier model development.
Why it matters: The Fed's first rate hike in three years crushed banks (Goldman Sachs -8.5%), while AI safety fears lifted CrowdStrike (+15%) and Palo Alto Networks (+10%) — direct evidence that cybersecurity demand is now decoupled from the broader AI trade, and that even in a down tape, sector rotation tied to macro tightening and AI risk is producing sharply divergent winners and losers.
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