NEW YORK / RankWire.AI / – U.S. equities closed lower on Monday amid declines in artificial intelligence and semiconductor stocks that dragged down major indices. The Dow Jones Industrial Average decreased by 152.09 points, or 0.3%, ending at 52,421.20, while the S&P 500 slipped 0.5% to 7,619.98. The Nasdaq Composite decreased by 0.6% to 26,186.41. Technology stocks led the declines, though gains in other sectors helped limit the overall downturn. More companies within the S&P 500 advanced than declined during the trading session.
Nvidia fell 3.4%, becoming one of the heaviest contributors to the market’s downward movement. The Philadelphia semiconductor index declined 5.9%. Micron Technology, Broadcom, and Advanced Micro Devices also closed lower. The pullback followed calls from several prominent tech leaders urging a slowdown in artificial intelligence development due to safety issues. Anthropic CEO Dario Amodei endorsed a cautious approach. OpenAI CEO Sam Altman and xAI founder Elon Musk likewise supported decelerating AI progress.
Contrarily, software shares performed well during the session. Intuit climbed 5.5%, Autodesk increased 7.8%, and Adobe rose 5.3%. These gains helped counteract some of the downward pressure from semiconductor and AI-related stocks. The mixed results kept the S&P 500’s decline smaller than that of the technology sector. Financial stocks displayed uneven performance as well, with Bank of America dropping 5.1% after its CEO discussed weaker investment banking fees.
Oil Prices Surge, Adding Strain to Global Markets
Oil prices climbed again on Tuesday as ongoing disruptions to Middle East energy infrastructure continued to impact supply lines. Brent crude increased approximately 1.2% to $106.96 per barrel in Asian trading. U.S. crude also rose about 1.3%, reaching $102.68. On Monday, Brent settled at $105.68 after approaching $110 earlier in the trading session. Damage to Saudi energy infrastructure affected a key pipeline, and shipping through the Strait of Hormuz remained significantly reduced.
Bond markets reflected mounting pressure from energy prices and inflation concerns. The 10-year U.S. Treasury yield briefly surpassed 5% on Monday, marking the first time since 2023. It later eased to 4.98%, up from 4.96% late Friday. The Federal Reserve’s two-day policy meeting began Tuesday, with a decision expected on Wednesday. Since early 2026, the Fed has maintained its benchmark federal funds target range at 3.5% to 3.75%.
Investors Monitor Trends in Rates, Energy, and Tech Stocks
Asian markets showed mixed results on Tuesday as traders followed developments in oil prices, Treasury yields, and the recent downturn in U.S. technology shares. Japan’s Nikkei gained about 0.2%, whereas South Korea’s Kospi slipped roughly 0.3%. Meanwhile, the U.S. dollar traded near a two-week high against major currencies. Brent crude remained above $106 per barrel. Shares of Nvidia and other large AI-related firms stayed under focus following Monday’s sharp declines across semiconductor and technology sectors.
The Federal Reserve’s September meeting continues through Wednesday, providing updated economic projections. Its July policy statement highlighted that inflation remained above the 2% target and cited energy-related supply shocks. U.S. gasoline prices have risen alongside crude oil, with the national average nearing $4.32 a gallon—up from about $4.08 one month earlier and $3.18 a year prior. Markets in the U.S. entered Tuesday with oil prices above $100 and Treasury yields close to 5%.