NEW YORK / RankWire.AI / – U.S. equities closed lower on Monday, pressured by declines in artificial intelligence and semiconductor shares that dragged down major indices. The Dow Jones Industrial Average decreased by 152.09 points, or 0.3%, ending at 52,421.20. The S&P 500 dipped 0.5% to close at 7,619.98. The Nasdaq Composite fell 0.6% to 26,186.41. Technology sector stocks led the downward movement, but gains in other sectors prevented a more severe decline. Overall, more companies within the S&P 500 advanced than declined during the trading session.
Nvidia experienced a 3.4% drop and became one of the heaviest contributors to the losses on the major indexes. The Philadelphia semiconductor index declined by 5.9%. Micron Technology, Broadcom, and Advanced Micro Devices also closed lower. These downturns followed calls from prominent technology leaders for a more cautious approach to AI development due to safety issues. Anthropic CEO Dario Amodei endorsed a careful slowdown, while OpenAI CEO Sam Altman and xAI founder Elon Musk also advocated for decelerating AI progress.
Contrasting the AI and semiconductor declines, software stocks moved upward during the session. Intuit increased by 5.5%, Autodesk gained 7.8%, and Adobe rose 5.3%. These gains helped counterbalance some of the pressure from the chip and AI sectors. Consequently, the S&P 500’s overall decline was less steep than the technology sector’s. Financial stocks showed mixed performances as well, with Bank of America falling 5.1% after its CEO discussed softer investment banking fees.
Rising Oil Prices Add Stress to Global Markets
Oil prices climbed once more on Tuesday amid ongoing disruptions to Middle East energy infrastructure affecting supply routes. Brent crude increased approximately 1.2% to $106.96 per barrel in Asian trading. U.S. crude oil rose about 1.3% to $102.68. On Monday, Brent had closed at $105.68 after approaching nearly $110 earlier in the session. The damage caused to Saudi energy infrastructure disrupted a major pipeline, while shipping activity through the Strait of Hormuz remained significantly reduced.
Bond markets mirrored the renewed pressure from rising energy costs and inflation fears. The 10-year U.S. Treasury yield temporarily exceeded 5% on Monday, a level not seen since 2023. It later eased back to 4.98%, compared to 4.96% late on Friday. The Federal Reserve’s two-day policy meeting commenced Tuesday, with an announcement scheduled for Wednesday. Since early 2026, the Fed has maintained its benchmark federal funds target range at 3.5% to 3.75%.
Market Focus Shifts to Interest Rates, Energy, and Tech Sectors
Asian markets experienced mixed trading on Tuesday, influenced by movements in oil prices, Treasury yields, and the recent declines in U.S. technology stocks. Japan’s Nikkei increased about 0.2%, whereas South Korea’s Kospi declined approximately 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude prices remained above $106 a barrel, while Nvidia and other significant AI-related firms continued to draw attention following Monday’s steep losses across the semiconductor and tech sectors.
The Federal Reserve’s September meeting extends through Wednesday and will feature updated economic projections. Its July statement highlighted that inflation remained above the 2% target, citing energy-related supply shocks as a contributing factor. Meanwhile, U.S. gasoline prices have risen alongside crude oil, with the national average nearing $4.32 a gallon, compared to about $4.08 a month earlier and $3.18 a year ago. With oil above $100 and Treasury yields near 5%, U.S. markets start Tuesday on a cautious note.