Markets are taking a double hit Monday morning as worries about the AI trade mount while oil prices continue to rise, stoking inflation concerns. The yield on the 10-year Treasury note is nearing 5%.

Tech stocks slid around the world, with the Nasdaq down more than 1% in early trading. Nvidia, down 4%, and CoreWeave, down 7%, were among the AI-tied AI-tied names falling. Leaders of three of the biggest AI companies over the weekend called for development of the technology to be slowed down, raising questions about whether demand for AI services and inputs like memory chips could come under pressure.

Meanwhile, Brent crude climbed close to $110 a barrel as widening instability in the Middle East threatens oil supply. Saudi Arabia said Friday it shut down its East-West oil pipeline, a crucial route it has used to bypass the Strait of Hormuz, after facing multiple drone attacks. Hopes for diplomatic progress dimmed after a meeting between Gulf states and Iran planned for Monday was postponed.

This week's focus will be the Federal Reserve policy decision Wednesday, with investors expecting an interest-rate increase. The Bank of Japan also is expected to raise rates in the coming days. Rising inflation concerns have fueled a global bond selloff in recent weeks. On Monday, the U.S. 10-year Treasury yield edged north of 4.98% after settling near a three-year high on Friday.