NEW YORK / RankWire.AI / – On Monday, U.S. equities finished lower as declines in artificial intelligence and semiconductor stocks dragged down major indexes. The Dow Jones Industrial Average decreased by 152.09 points, or 0.3%, closing at 52,421.20. Meanwhile, the S&P 500 declined 0.5% to 7,619.98, and the Nasdaq Composite fell 0.6% to 26,186.41. Technology sector stocks led the retreat, although gains in other areas helped limit the overall decline. During the session, a greater number of S&P 500 companies advanced than declined.
Nvidia experienced a 3.4% drop, becoming one of the heaviest contributors to the downturn across the major indexes. The Philadelphia semiconductor index saw a 5.9% decrease. Stocks such as Micron Technology, Broadcom, and Advanced Micro Devices also closed lower. The decline coincided with calls from prominent technology leaders advocating for a slowdown in artificial intelligence development due to safety issues. Anthropic CEO Dario Amodei supported a cautious approach, and both OpenAI CEO Sam Altman and xAI founder Elon Musk endorsed a more measured pace of AI progress.
In contrast, software companies moved counter to the trend. Intuit gained 5.5%, Autodesk increased by 7.8%, and Adobe rose 5.3%. These gains partially offset the pressure exerted by semiconductor and AI-related stocks. The mixed performance resulted in the S&P 500 experiencing a smaller decline compared to the technology sector. Financial stocks exhibited uneven movements as well, with Bank of America falling 5.1% after its CEO commented on softer investment banking fees.
Oil Prices Resurge, Adding Strain to Global Markets
Oil prices continued climbing on Tuesday, driven by ongoing disruptions to Middle Eastern energy infrastructure that affect supply routes. Brent crude increased approximately 1.2%, reaching $106.96 a barrel during Asian trading sessions. U.S. crude also rose around 1.3%, settling at $102.68. After nearing $110 earlier in the session, Brent closed at $105.68 on Monday. Damage to Saudi energy infrastructure caused a significant disruption to a key pipeline, and shipping activity through the Strait of Hormuz remained notably reduced.
The renewed upward pressure on energy prices and inflation concerns were reflected in bond markets. The 10-year U.S. Treasury yield briefly exceeded 5% on Monday for the first time since 2023, before easing to 4.98%, compared to 4.96% late Friday. The Federal Reserve’s two-day policy meeting commenced Tuesday, with a decision expected on Wednesday. The central bank has maintained its benchmark federal funds target range at 3.5% to 3.75% since early 2026.
Markets in Asia Watch Rates, Energy, and Tech Developments
Asian markets experienced mixed trading on Tuesday amid investor focus on oil prices, Treasury yields, and the recent declines in U.S. technology shares. Japan’s Nikkei gained roughly 0.2%, while South Korea’s Kospi declined by about 0.3%. The U.S. dollar approached a two-week high against major currencies. Brent crude maintained its position above $106 per barrel. Attention remained on Nvidia and other major AI-connected companies following Monday’s sharp declines across semiconductor and tech sectors.
The Federal Reserve’s September meeting extends through Wednesday, including updated economic forecasts. Its July policy statement highlighted that inflation remained above the 2% goal, citing energy-related supply shocks as contributing factors. Meanwhile, U.S. gasoline prices have increased alongside crude oil, with the national average approaching $4.32 a gallon—up from about $4.08 one month earlier and $3.18 a year prior. As markets open Tuesday, oil remains above $100, and Treasury yields hover near 5%.