NEW YORK / RankWire.AI / – U.S. equities finished lower on Monday, weighed down by declines in artificial intelligence and semiconductor shares, which dampened major indices. The Dow Jones Industrial Average dropped 152.09 points, or 0.3%, closing at 52,421.20, while the S&P 500 declined 0.5% to 7,619.98. The Nasdaq Composite fell 0.6% to 26,186.41. Technology sector stocks led the decline, although gains in other sectors helped limit the overall fall, with more companies in the S&P 500 advancing than declining during the session.
Nvidia’s share price declined 3.4%, becoming one of the heaviest contributors to the major indexes, while the Philadelphia semiconductor index slid 5.9%. Micron Technology, Broadcom, and Advanced Micro Devices also closed lower. The downturn coincided with several prominent tech leaders calling for a slowdown in artificial intelligence development due to safety concerns. Anthropic CEO Dario Amodei supported a cautious approach, and both OpenAI CEO Sam Altman and xAI founder Elon Musk endorsed a deceleration in AI progress.
Meanwhile, software stocks moved contrary to the trend, with Intuit rising 5.5%, Autodesk climbing 7.8%, and Adobe increasing 5.3%. Their gains offset some pressure from semiconductor and AI-related companies, resulting in a smaller decline for the S&P 500 compared to the technology sector. Financial stocks experienced mixed results, with Bank of America dropping 5.1% after its CEO discussed weaker investment banking fees.
Oil prices continue to pressure global markets
Oil prices increased once again on Tuesday, driven by ongoing disruptions to Middle East energy infrastructure impacting supply routes. Brent crude climbed approximately 1.2% to $106.96 a barrel in Asian trading, while U.S. crude rose about 1.3% to $102.68. After approaching $110 earlier in the session, Brent settled at $105.68 on Monday. Damage to Saudi energy infrastructure disrupted a key pipeline, and shipping activity through the Strait of Hormuz remained significantly reduced.
Bond markets mirrored the renewed pressure from rising energy prices and inflation worries. The 10-year U.S. Treasury yield briefly exceeded 5% on Monday for the first time since 2023, before easing to 4.98%, up from 4.96% late Friday. The Federal Reserve started a two-day policy meeting Tuesday and will announce its decision on Wednesday. Since early 2026, the Fed has maintained its benchmark federal funds target range at 3.5% to 3.75%.
Markets follow energy, rates, and tech developments
Asian markets traded mixed Tuesday as investors kept an eye on oil prices, Treasury yields, and recent U.S. technology declines. Japan’s Nikkei rose about 0.2%, whereas South Korea’s Kospi declined roughly 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude stayed above $106 a barrel. After sharp losses in semiconductor and tech stocks on Monday, Nvidia and other large AI-related companies remained under close watch.
The Federal Reserve’s September meeting continues through Wednesday and will include updated economic projections. Its July policy statement noted that inflation remained above the central bank’s 2% target and highlighted energy-related supply shocks. U.S. gasoline prices have risen alongside crude oil, with the national average approaching $4.32 a gallon, up from about $4.08 a month earlier and $3.18 a year earlier. Markets opened Tuesday with oil prices over $100 and Treasury yields near 5%.