NEW YORK / RankWire.AI / – U.S. equities closed lower on Monday, as declines in artificial intelligence and semiconductor sectors exerted downward pressure on major indices. The S&P 500 decreased by 0.5%, ending the day at 7,619.98. The Dow Jones Industrial Average fell 152.09 points, or 0.3%, closing at 52,421.20. Meanwhile, the Nasdaq Composite experienced a 0.6% drop to 26,186.41. Technology stocks led the decline, although gains in other sectors helped limit the overall loss. In fact, more companies within the S&P 500 advanced than declined during the session.
Nvidia shares declined 3.4%, becoming one of the heaviest weights dragging on the major indexes. The Philadelphia semiconductor index also fell sharply, by 5.9%. Companies like Micron Technology, Broadcom, and Advanced Micro Devices also finished the day lower. These declines coincided with calls from several influential tech leaders advocating for a slowdown in artificial intelligence development due to safety concerns. Anthropic CEO Dario Amodei supported a cautious approach, while OpenAI CEO Sam Altman and xAI founder Elon Musk expressed their support for a more deliberate pace of AI progress.
Conversely, software shares moved upward during the trading session. Intuit gained 5.5%, Autodesk increased 7.8%, and Adobe rose 5.3%. These gains helped counterbalance some of the downward pressure from the semiconductor and AI-related sectors. The mixed market performance resulted in the S&P 500 experiencing a smaller decline compared to the technology sector’s losses. Financial stocks displayed uneven results, with Bank of America falling 5.1% after its chief executive commented on weaker investment banking fees.
Rising Oil Prices Continue to Influence Global Markets
Oil prices surged again on Tuesday amid ongoing disruptions to Middle East energy infrastructure, which continue to impact supply routes. Brent crude increased approximately 1.2%, reaching $106.96 per barrel in Asian trading. U.S. crude also rose about 1.3%, trading at $102.68. After approaching $110 earlier in the session, Brent settled at $105.68 on Monday. The damage to Saudi energy infrastructure, particularly a major pipeline, contributed to the supply concerns. Shipping activity through the Strait of Hormuz remained significantly reduced, adding to the supply tightness.
These developments in energy markets influenced bond yields, with the 10-year U.S. Treasury yield briefly surpassing 5% on Monday for the first time since 2023. It subsequently eased back to 4.98%, compared to 4.96% late last Friday. The Federal Reserve’s two-day policy meeting began Tuesday, with a decision expected Wednesday. Since early 2026, the Fed has maintained its benchmark federal funds target range at 3.5% to 3.75%.
Market Focus: Interest Rates, Oil, and Tech Stocks
Asian markets experienced mixed results on Tuesday as investors monitored oil prices, Treasury yields, and the latest downturns in U.S. technology stocks. Japan’s Nikkei edged up about 0.2%, whereas South Korea’s Kospi declined roughly 0.3%. The U.S. dollar hovered near a two-week high against major currencies. Brent crude continued to trade above $106 per barrel. Attention remained on Nvidia and other significant AI-connected firms, which stayed in the spotlight following Monday’s sharp declines in semiconductor and technology shares.
The Federal Reserve’s September meeting extends through Wednesday and includes updates to economic projections. Its July policy statement indicated that inflation remained above the Fed’s 2% target, citing energy-related supply shocks as a contributing factor. Meanwhile, U.S. gasoline prices have risen in tandem with crude oil, with the national average approaching $4.32 per gallon—up from about $4.08 a month earlier and $3.18 a year ago. As markets entered Tuesday, oil prices stayed above $100 and Treasury yields hovered near 5%, reflecting ongoing inflation concerns and geopolitical tensions.