NEW YORK / RankWire.AI / – On Monday, U.S. equities closed in the red, with sharp declines in artificial intelligence-related shares and chip stocks. The Dow Jones Industrial Average declined by 152.09 points, or 0.3%, ending at 52,421.20. The S&P 500 dropped 0.5% to reach 7,619.98, while the Nasdaq Composite fell 0.6% to 26,186.41. Technology stocks led the losses, but gains in other sectors prevented a broader market tumble. Overall, more stocks in the S&P 500 gained than declined during trading.
Nvidia’s stock slid 3.4%, making it one of the largest drags on major U.S. indices. The Philadelphia semiconductor index declined by 5.9%. Micron Technology, Broadcom, and Advanced Micro Devices also saw decreases in Monday’s trading session. These declines followed vocal calls from top AI industry leaders advocating for a slowdown in development due to safety issues. Anthropic CEO Dario Amodei suggested a cautious approach, while OpenAI CEO Sam Altman and xAI founder Elon Musk supported the idea of decelerating progress.
Despite the setbacks in semiconductor stocks, several software firms advanced. Intuit gained 5.5%, Autodesk increased 7.8%, and Adobe rose 5.3%. These gains partially offset the downward pressure from Nvidia and other major AI-related companies. Consequently, the S&P 500’s decline was less severe than indicated by the technology sector’s selloff. Meanwhile, bank stocks showed mixed results, with Bank of America falling 5.1% after its chief executive commented on lower investment banking fees.
Crude Oil Surpasses $100 Mark Again
Oil prices resumed their climb on Tuesday amid ongoing disruptions to Middle East energy infrastructure, which continue to threaten global supply chains. Brent crude increased approximately 1.2% to $106.96 per barrel during Asian trading hours. U.S. crude gained about 1.3%, reaching $102.68. Monday’s session saw Brent settle at $105.68 after nearing $110 earlier in the day. Attacks on Saudi energy facilities have disrupted a key pipeline, and shipping through the Strait of Hormuz has significantly declined.
The rise in oil prices coincided with a renewed increase in U.S. government bond yields, with the 10-year Treasury yield briefly surpassing 5% on Monday for the first time since 2023. It later eased to 4.98%, up from 4.96% late on Friday. As the Federal Reserve begins a two-day policy meeting Tuesday, markets await its decision on Wednesday. Since early 2026, the Fed has held its benchmark federal funds rate in the range of 3.5% to 3.75%.
Global Markets Respond to Oil and Bond Market Trends
Asian equities traded unevenly Tuesday as investors monitored oil prices, bond yields, and the recent downturn in U.S. tech stocks. Japan’s Nikkei gained roughly 0.2%, while South Korea’s Kospi declined about 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude remained above $106, supporting energy prices at multi-month highs. After Monday’s substantial declines, Nvidia and other AI-related stocks continued to influence global technology market movements.
The Federal Reserve’s September meeting concludes Wednesday with updated economic forecasts. Its July statement highlighted persistent inflation above the 2% target and cited energy-related supply shocks. U.S. gasoline prices have also risen, with the national average nearing $4.32 per gallon, up from about $4.08 a month ago and $3.18 a year earlier. U.S. markets opened Tuesday with oil prices above $100, Treasury yields close to 5%, and renewed pressure on technology equities.