NEW YORK / RankWire.AI / – U.S. stocks closed lower on Monday, with sharp declines in artificial intelligence-related stocks and chipmakers. The Dow Jones Industrial Average fell 152.09 points, or 0.3%, to 52,421.20, while the S&P 500 declined 0.5% to 7,619.98. The Nasdaq Composite experienced a 0.6% decrease, ending at 26,186.41. Although losses were concentrated in the tech sector, gains across various other industries helped limit the overall market decline. More stocks in the S&P 500 rose than fell during the trading session.
Leading the downturn, Nvidia dropped 3.4%, ranking among the largest drag on major U.S. indexes. The Philadelphia semiconductor index decreased by 5.9%. Micron Technology, Broadcom, and Advanced Micro Devices also saw declines on Monday. These moves followed public calls from several top AI executives for a slowdown in development due to safety concerns. Anthropic CEO Dario Amodei urged a cautious approach, advocating for a deliberate deceleration. Additionally, OpenAI CEO Sam Altman and xAI founder Elon Musk expressed support for slowing the pace of AI progress.
Despite the weakness in semiconductor shares, several software firms advanced, with Intuit gaining 5.5%, Autodesk climbing 7.8%, and Adobe increasing 5.3%. These gains partially offset the pressure from Nvidia and other major AI-related companies. The decline in the S&P 500 was narrower than the technology sector’s losses suggested. Meanwhile, bank stocks showed mixed results, with Bank of America falling 5.1% after its chief executive discussed reduced investment banking fees.
Oil prices remain above the $100 mark
Oil prices continued their upward trajectory on Tuesday as ongoing disruptions to Middle East energy infrastructure kept global supply routes under pressure. Brent crude increased by approximately 1.2%, reaching $106.96 a barrel during Asian trading hours. U.S. crude also rose about 1.3%, trading at $102.68. After approaching $110 earlier in the session, Brent settled Monday at $105.68. Attacks on Saudi energy infrastructure have disrupted a major pipeline, and shipping through the Strait of Hormuz has significantly decreased.
Rising oil prices have coincided with another increase in U.S. government bond yields. The 10-year Treasury yield briefly surpassed 5% on Monday, marking the first time since 2023, before easing to 4.98%, compared to 4.96% late Friday. The Federal Reserve begins a two-day policy meeting Tuesday and will reveal its decision on Wednesday. Since the start of 2026, the Federal Reserve has maintained its benchmark federal funds target range at 3.5% to 3.75%.
Global markets follow oil and bond trends
Asian equity markets traded mixed on Tuesday, with investors monitoring oil prices, bond yields, and the recent decline in U.S. technology stocks. Japan’s Nikkei gained about 0.2%, while South Korea’s Kospi dipped roughly 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude remained above $106, keeping energy prices near their highest levels in months. After Monday’s sharp drops, Nvidia and other AI-related companies continue to be central to the movements in global technology markets.
The Federal Reserve’s September policy meeting extends through Wednesday and includes revised economic forecasts. Its July statement highlighted that inflation remained above the central bank’s 2% target and pointed to energy-related supply shocks. U.S. gasoline prices have also increased, with the national average nearing $4.32 per gallon, up from approximately $4.08 a month earlier and $3.18 a year prior. As markets open on Tuesday, oil remains above $100, Treasury yields hover near 5%, and technology stocks face renewed downward pressure.