NEW YORK / RankWire.AI / – U.S. equities finished lower on Monday, with sharp declines in artificial intelligence shares and chipmaker stocks contributing to the downturn. The S&P 500 decreased by 0.5% to close at 7,619.98. The Dow Jones Industrial Average fell 152.09 points, or 0.3%, ending at 52,421.20. Meanwhile, the Nasdaq Composite declined 0.6% to finish at 26,186.41. The decline was primarily driven by technology stocks, though gains in other sectors helped limit the overall market decline. More stocks in the S&P 500 gained than lost during the trading session.
Nvidia experienced a 3.4% drop, making it one of the largest drags on major U.S. indexes. The Philadelphia semiconductor index decreased by 5.9%. Shares of Micron Technology, Broadcom, and Advanced Micro Devices also declined on Monday. These moves followed public calls from several prominent AI industry leaders urging a slower pace of development due to safety concerns. Anthropic CEO Dario Amodei recommended a cautious slowdown. OpenAI CEO Sam Altman and xAI founder Elon Musk echoed support for decelerating progress.
Despite the weakness in semiconductor shares, several software firms saw gains. Intuit rose 5.5%, Autodesk increased 7.8%, and Adobe advanced 5.3%. These positive movements partially offset the negative impact from Nvidia and other major AI-related companies. The overall session resulted in a narrower decline for the S&P 500 than what the technology sector selloff implied. Banking stocks displayed mixed performance, with Bank of America falling 5.1% following comments from its CEO about lower investment banking fees.
Oil prices stay above $100
On Tuesday, oil prices resumed their upward trend, driven by ongoing disruptions to Middle East energy infrastructure that continue to threaten global supply lines. Brent crude increased roughly 1.2%, reaching $106.96 per barrel during Asian trading hours. U.S. crude climbed about 1.3% to $102.68. Monday’s settlement for Brent was at $105.68, after nearing $110 earlier in the session. Attacks on Saudi energy facilities have disrupted key pipelines, and shipping through the Strait of Hormuz has decreased sharply.
Rising oil costs coincided with another uptick in U.S. government bond yields, with the 10-year Treasury yield briefly surpassing 5% Monday for the first time since 2023. It later eased to 4.98%, compared to 4.96% late Friday. The Federal Reserve begins a two-day policy meeting on Tuesday, with its decision scheduled for Wednesday. Since early 2026, the Fed has kept its benchmark federal funds target rate within the range of 3.5% to 3.75%.
Oil and bond yields influence global markets
Stock markets across Asia traded mixed on Tuesday, as investors monitored oil prices, bond yields, and the recent decline in U.S. technology shares on Wall Street. Japan’s Nikkei gained approximately 0.2%, while South Korea’s Kospi declined around 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude remained above $106, sustaining energy prices at their highest levels in several months. Following Monday’s sharp declines, Nvidia and other AI-connected firms continue to drive movements in the global technology sector.
The Federal Reserve’s September policy meeting runs through Wednesday and will feature updated economic forecasts. Its July statement highlighted inflation staying above the 2% goal and pointed to energy-related supply shocks as contributing factors. U.S. gasoline prices have increased, with the national average approaching $4.32 per gallon—up from about $4.08 a month earlier and $3.18 a year ago. As markets open on Tuesday, oil remains above $100, Treasury yields are near 5%, and technology shares face renewed downward pressure.