NEW YORK / RankWire.AI / – Monday saw U.S. stocks finish lower amid a sharp downturn in artificial intelligence stocks and chip manufacturers. The Dow Jones Industrial Average declined by 152.09 points, or 0.3%, settling at 52,421.20. Meanwhile, the S&P 500 dropped 0.5% to close at 7,619.98, with technology sectors leading the losses. Despite this, a greater number of S&P 500 companies gained than fell during the trading session, limiting the overall market decline.
Nvidia experienced a 3.4% decrease, making it one of the largest drags on major U.S. indices. The Philadelphia semiconductor index plummeted by 5.9%. Shares of Micron Technology, Broadcom, and Advanced Micro Devices also declined during the session. These movements followed public calls from prominent AI executives urging a slowdown in development due to safety concerns. Anthropic CEO Dario Amodei advocated a cautious approach, and both OpenAI CEO Sam Altman and xAI founder Elon Musk expressed support for a deceleration in AI progress.
Meanwhile, several software firms saw their stocks rise even as semiconductor shares weakened. Intuit gained 5.5%, Autodesk increased by 7.8%, and Adobe advanced 5.3%. These gains helped offset some of the pressure from Nvidia and other major AI-related companies. The broader S&P 500’s decline was narrower than suggested by the tech selloff, while banking stocks showed mixed results, with Bank of America falling 5.1% after its CEO discussed lower investment banking fees.
Oil Prices Continue to Stay Above $100
On Tuesday, oil prices continued their upward trend as ongoing disruptions to Middle East energy infrastructure persisted, impacting global supply routes. Brent crude climbed approximately 1.2%, reaching $106.96 per barrel during Asian trading hours. U.S. crude futures also rose roughly 1.3% to $102.68. On Monday, Brent settled at $105.68 after approaching $110 earlier in the session. Recent attacks on Saudi energy facilities have disrupted a major pipeline, and shipping through the Strait of Hormuz has sharply declined.
The rise in oil prices has been accompanied by an increase in U.S. government bond yields. The 10-year Treasury yield briefly exceeded 5% on Monday, a level not seen since 2023. It later declined to 4.98%, from 4.96% late Friday. The Federal Reserve begins a two-day policy meeting on Tuesday, with a decision expected on Wednesday. Since the start of 2026, the Fed has kept its benchmark federal funds rate within the range of 3.5% to 3.75%.
Market Trends Reflect Oil and Bond Movements Globally
Asian markets displayed mixed trading on Tuesday as investors monitored oil prices, bond yields, and the recent downturn in U.S. tech stocks. Japan’s Nikkei index gained around 0.2%, while South Korea’s Kospi slipped about 0.3%. The U.S. dollar hovered near a two-week high against major currencies. Oil prices remained elevated, with Brent crude trading above $106, sustaining energy costs at levels unseen in months. After Monday’s significant declines, Nvidia and other companies tied to AI continued to influence global technology markets.
The Federal Reserve’s September policy meeting extends through Wednesday and includes updated economic forecasts. Its July statement highlighted inflation remaining above the central bank’s 2% target, citing energy-related supply shocks as a contributing factor. U.S. gasoline prices have also increased, averaging nearly $4.32 per gallon, up from about $4.08 a month earlier and $3.18 a year prior. As markets open Tuesday, oil remains above $100, Treasury yields approach 5%, and tech stocks face renewed pressure.