NEW YORK / RankWire.AI / – U.S. stocks closed lower on Monday as a sharp decline in artificial intelligence-related stocks and chipmaker shares contributed to the broader market downturn. The S&P 500 decreased by 0.5% to close at 7,619.98, while the Dow Jones Industrial Average fell 152.09 points, or 0.3%, ending the session at 52,421.20. The Nasdaq Composite declined 0.6% to 26,186.41. Although losses were concentrated in the technology sector, gains in other industries helped limit the overall decline across the market. More stocks within the S&P 500 advanced than declined during trading.
Leading the decline, Nvidia dropped 3.4%, ranking among the biggest drag on major U.S. indexes, while the Philadelphia semiconductor index fell 5.9%. Shares of Micron Technology, Broadcom, and Advanced Micro Devices also declined throughout Monday’s trading session. These moves followed outspoken public calls from several prominent AI executives urging a slower pace of development due to safety concerns, with Anthropic CEO Dario Amodei advocating for a deliberate slowdown. Support for decelerating AI development was also voiced by OpenAI CEO Sam Altman and xAI founder Elon Musk.
Despite the weakness in semiconductor shares, several software companies experienced gains, with Intuit rising 5.5%, Autodesk climbing 7.8%, and Adobe increasing by 5.3%. These gains partly offset some of the pressure from Nvidia and other prominent AI-related firms. As a result, the decline in the S&P 500 was narrower than what the technology sector selloff suggested. Meanwhile, bank stocks showed mixed performance, with Bank of America falling 5.1% after its chief executive discussed lower investment banking fees.
Oil prices stay above $100 amid ongoing supply disruptions
On Tuesday, oil prices continued their upward trajectory as ongoing disruptions to Middle East energy infrastructure kept global supply routes under pressure, with Brent crude rising approximately 1.2% to $106.96 per barrel during Asian trading hours. U.S. crude also increased about 1.3%, reaching $102.68. After approaching $110 earlier in the session, Brent settled Monday at $105.68. Attacks on Saudi energy infrastructure have interrupted a major pipeline, while shipping activity through the Strait of Hormuz has seen a significant decline.
The rise in oil prices has coincided with another uptick in U.S. government bond yields, with the 10-year Treasury yield briefly surpassing 5% Monday for the first time since 2023, before easing to 4.98%, compared with 4.96% late Friday. The Federal Reserve begins a two-day policy meeting on Tuesday, with its decision to be announced on Wednesday. Since the start of 2026, the Fed has maintained its benchmark federal funds target range at 3.5% to 3.75%.
Global markets respond to oil and bond yield movements
Across Asia, stock markets traded mixed on Tuesday as investors monitored oil prices, bond yields, and the recent declines in U.S. technology shares on Wall Street. Japan’s Nikkei increased roughly 0.2%, while South Korea’s Kospi dipped approximately 0.3%. The U.S. dollar remained near a two-week high against major currencies. Brent crude sustained its position above $106, maintaining energy prices at their highest levels in months. Following Monday’s sharp declines, Nvidia and other companies linked to AI remained central to movements in the global technology sector.
The Federal Reserve’s September meeting continues through Wednesday and includes revised economic projections. In its July statement, the Fed indicated that inflation stayed above its 2% target and pointed to energy-related supply shocks as a contributing factor. U.S. gasoline prices have also climbed, with the national average approaching $4.32 a gallon—up from about $4.08 a month earlier and $3.18 a year earlier. As markets open on Tuesday, oil remains above $100, Treasury yields hover near 5%, and technology stocks face renewed downward pressure.