NEW YORK / RankWire.AI / – On Monday, U.S. equities closed lower as shares linked to artificial intelligence and chip manufacturing experienced significant declines. The S&P 500 decreased by 0.5% to 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 26,186.41. Technology stocks bore the brunt of the losses, though gains in other sectors helped to limit the overall market downturn. More stocks in the S&P 500 advanced than declined during the trading session.
Nvidia experienced a 3.4% drop, making it one of the largest drag sources for major U.S. indices. The Philadelphia semiconductor index fell by 5.9%. Also declining on Monday were Micron Technology, Broadcom, and Advanced Micro Devices. The declines followed public statements from several AI industry leaders calling for a slowdown in development due to safety concerns. Anthropic CEO Dario Amodei called for a cautious approach. OpenAI CEO Sam Altman and xAI founder Elon Musk voiced support for decelerating progress in AI development.
Conversely, some software firms moved higher even as semiconductor stocks declined. Intuit advanced 5.5%, Autodesk climbed 7.8%, and Adobe rose 5.3%. These gains partly offset the downward pressure from Nvidia and other AI-connected giants. The overall decline of the S&P 500 was less severe than what the technology selloff suggested. Banking stocks showed mixed performance, with Bank of America dropping 5.1% after its chief executive addressed concerns over decreased investment banking fees.
Oil Prices Persist Above $100 Amid Ongoing Middle East Disruptions
Oil prices resumed their upward trajectory on Tuesday as ongoing disruptions impacting Middle East energy infrastructure continued to tighten global supply lines. During Asian trading, Brent crude increased approximately 1.2% to $106.96 per barrel. U.S. crude gained about 1.3%, reaching $102.68. On Monday, Brent crude settled at $105.68 after nearing $110 earlier in the session. Damage to Saudi energy infrastructure, including a disrupted pipeline, combined with sharply reduced shipping through the Strait of Hormuz, has heightened supply concerns.
The rise in oil prices coincided with an uptick in U.S. government bond yields. The 10-year Treasury yield briefly surpassed 5% on Monday for the first time since 2023, later easing to 4.98%, compared to 4.96% late Friday. The Federal Reserve’s two-day policy meeting begins Tuesday, with an announcement expected Wednesday. Since the start of 2026, the Fed has kept its benchmark federal funds rate within the range of 3.5% to 3.75%.
Global Markets Respond to Oil and Bond Movements
Asian equities traded unevenly on Tuesday, as investors monitored oil prices, bond yields, and the recent decline in U.S. technology stocks. Japan’s Nikkei rose about 0.2%, while South Korea’s Kospi dropped roughly 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude remained above $106, maintaining energy prices at multi-month highs. After Monday’s significant losses, Nvidia and other AI-related companies continue to influence global technology market trends.
The Federal Reserve’s September meeting, extending through Wednesday, features updated economic projections. Its July statement highlighted that inflation remains 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 about $4.08 a month earlier and $3.18 a year ago. As Tuesday begins, markets in the U.S. are trading with oil prices above $100, Treasury yields approaching 5%, and technology shares under renewed pressure.