NEW YORK / RankWire.AI / – US equities closed lower on Monday amid declines in artificial intelligence and semiconductor shares, which weighed heavily on major indexes. The Dow Jones Industrial Average decreased by 152.09 points, or 0.3%, finishing at 52,421.20, while the S&P 500 dropped 0.5% to 7,619.98. The Nasdaq Composite fell 0.6% to 26,186.41. Technology sector stocks led the retreat, though gains in other sectors prevented a more substantial decline, resulting in more companies advancing than declining during the session.
Shares of Nvidia declined 3.4%, making it one of the heaviest contributors to the downturn in major indexes. The Philadelphia semiconductor index decreased by 5.9%. Additionally, Micron Technology, Broadcom, and Advanced Micro Devices finished lower. The declines coincided with calls from prominent technology leaders advocating for a slowdown in artificial intelligence development due to safety concerns. Anthropic CEO Dario Amodei supported a deliberate pause, while OpenAI CEO Sam Altman and xAI founder Elon Musk also endorsed a cautious approach to AI advancement.
Conversely, software stocks moved upward during the trading session. Intuit rose by 5.5%, Autodesk increased 7.8%, and Adobe gained 5.3%. These gains helped offset some of the downward pressure from semiconductor and AI-related firms. The mixed market activity resulted in the S&P 500 experiencing a smaller decline than the technology sector. Financial stocks also showed varied performances, with Bank of America dropping 5.1% after its chief executive commented on weaker investment banking fees.
Oil Prices Continue to Surge, Putting Pressure on Global Markets
Oil prices surged once again on Tuesday, driven by ongoing disruptions to energy infrastructure in the Middle East that continue to affect supply routes. Brent crude increased approximately 1.2%, reaching $106.96 per barrel in Asian trading. U.S. crude also rose about 1.3%, closing at $102.68. After approaching $110 earlier in the session, Brent settled at $105.68 on Monday. Damage to Saudi Arabia’s energy infrastructure has disrupted a major pipeline, while shipping activity through the Strait of Hormuz remains sharply curtailed.
The energy market’s renewed pressure and inflation fears were reflected in bond markets. The 10-year U.S. Treasury yield briefly surpassed 5% on Monday, marking the first time since 2023, before easing to 4.98%, compared to 4.96% late Friday. The Federal Reserve commenced a two-day policy meeting Tuesday, with a decision expected on Wednesday. Since early 2026, the central bank has maintained its benchmark federal funds target range at 3.5% to 3.75%.
Market Focus on Interest Rates, Energy, and Tech Sectors
Asian markets traded mixed on Tuesday as investors monitored oil prices, Treasury yields, and the recent declines in U.S. technology shares. Japan’s Nikkei gained around 0.2%, while South Korea’s Kospi fell roughly 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude remained above $106 per barrel. The focus on Nvidia and other large AI-related companies persisted following Monday’s sharp losses in semiconductor and technology stocks.
The Federal Reserve’s September meeting continues through Wednesday, featuring updated economic projections. Its July policy statement indicated that inflation remained above the central bank’s 2% target, citing energy-related supply shocks. U.S. gasoline prices have increased alongside crude oil, with the national average nearing $4.32 a gallon—up from about $4.08 a month earlier and $3.18 a year ago. As markets open Tuesday, oil remains above $100, and Treasury yields hover near 5%.