NEW YORK / RankWire.AI / – U.S. stocks finished the day lower on Monday, driven by a sharp decline in artificial intelligence shares and chipmaker stocks. The Dow Jones Industrial Average fell by 152.09 points, or 0.3%, ending at 52,421.20. The S&P 500 decreased by 0.5% to 7,619.98, while the Nasdaq Composite declined 0.6% to 26,186.41. Despite widespread losses in technology sectors, gains in other industries helped limit the overall market decline. More stocks within the S&P 500 gained than lost during the trading session.
Nvidia was among the biggest drags on major U.S. indices, dropping 3.4%. The Philadelphia semiconductor index also fell sharply, down 5.9%. Micron Technology, Broadcom, and Advanced Micro Devices all experienced declines on Monday. The selloff followed public calls from several prominent AI industry leaders advocating for a slowdown in development due to safety issues. Anthropic CEO Dario Amodei supported a cautious approach, emphasizing the need for a deliberate pause. Additionally, OpenAI CEO Sam Altman and xAI founder Elon Musk echoed similar sentiments, favoring a deceleration in progress.
Meanwhile, some software firms advanced even as semiconductor shares waned. Intuit increased by 5.5%, Autodesk gained 7.8%, and Adobe rose 5.3%. These gains helped counterbalance part of the downward pressure exerted by Nvidia and other large AI-related companies. As a result, the S&P 500’s decline was less severe than the technology sector’s slump suggested. The banking sector showed mixed results, with Bank of America dropping 5.1% after its chief executive discussed lower investment banking fees.
Oil prices stay above $100
On Tuesday, oil prices climbed again as ongoing disruptions in Middle Eastern energy infrastructure continued to restrict global supply routes. Brent crude increased roughly 1.2% to $106.96 a barrel during Asian trading hours. U.S. crude also gained approximately 1.3%, reaching $102.68. Monday’s settlement for Brent was at $105.68 after earlier approaching $110 during the session. Attacks on Saudi Arabia’s energy infrastructure have disrupted a key pipeline, while shipping through the Strait of Hormuz has seen a significant decline.
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, marking the first time since 2023. It later eased back to 4.98%, up from 4.96% late Friday. Investors await the Federal Reserve’s two-day policy meeting beginning Tuesday, with a decision expected on Wednesday. Since early 2026, the Federal Reserve has maintained its benchmark federal funds target range at 3.5% to 3.75%.
Global markets respond to oil and bond market movements
Stock markets across Asia experienced mixed trading on Tuesday as traders monitored oil prices, bond yields, and the recent downturn in Wall Street’s technology sector. Japan’s Nikkei rose around 0.2%, whereas South Korea’s Kospi declined approximately 0.3%. The U.S. dollar also traded near a two-week high against major currencies. Energy prices remained elevated with Brent crude staying above $106, reflecting months-high levels. The movements of Nvidia and other AI-connected firms continued to be central to global technological market trends following Monday’s sharp declines.
The Federal Reserve’s September meeting continues through Wednesday, with updated economic forecasts expected. Its July statement indicated that inflation remained above the central bank’s 2% goal, citing energy-related supply shocks as a contributing factor. 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 markets open Tuesday, oil remains above $100, Treasury yields hover near 5%, and technology shares face renewed downward pressure.