NEW YORK / RankWire.AI / – U.S. equities declined on Monday, with notable drops in artificial intelligence stocks and chipmakers, while the broader market saw some resilience. The Dow Jones Industrial Average fell 152.09 points, or 0.3%, ending at 52,421.20, whereas the Nasdaq Composite decreased by 0.6% to 26,186.41. The S&P 500 slipped 0.5% to 7,619.98, mainly driven down by tech sector losses, though gains in other sectors kept the overall decline limited. More stocks in the index advanced than declined during the session.
Nvidia dropped 3.4%, becoming one of the biggest draggers on major U.S. indexes, while the Philadelphia semiconductor index declined 5.9%. Shares of Micron Technology, Broadcom, and Advanced Micro Devices also fell during Monday’s trading session. These declines followed public calls from leading AI executives for a slowdown in development over safety concerns, with Anthropic CEO Dario Amodei advocating a careful delay. OpenAI CEO Sam Altman and xAI founder Elon Musk also expressed support for decelerating AI progress.
Meanwhile, several software firms experienced gains despite the semiconductor sector’s weakness. Intuit rose 5.5%, Autodesk increased 7.8%, and Adobe moved up 5.3%. These gains helped offset some of the downward pressure from Nvidia and other major AI-related companies. As a result, the S&P 500 experienced a less severe decline than the tech selloff suggested. Bank stocks showed mixed results, with Bank of America falling 5.1% after its CEO discussed reduced investment banking fees.
Oil remains above $100 amid ongoing disruptions
Oil prices continued their ascent Tuesday as ongoing disruptions in Middle East energy infrastructure persisted, putting pressure on global supply routes. During Asian trading, Brent crude increased about 1.2% to $106.96 a barrel, while U.S. crude gained roughly 1.3% to $102.68. Monday’s settlement for Brent was $105.68, after nearing $110 earlier in the session. Disruptions caused by attacks on Saudi energy infrastructure and a sharp decline in shipping through the Strait of Hormuz have contributed to these price hikes.
Higher oil prices have coincided with a rise in U.S. government bond yields, with the 10-year Treasury yield briefly surpassing 5% Monday for the first time since 2023. It later eased to 4.98%, compared to 4.96% late Friday. The Federal Reserve’s two-day policy meeting begins Tuesday, with an announcement scheduled for Wednesday. Since the start of 2026, the Fed has maintained its benchmark federal funds target range at 3.5% to 3.75%.
Global markets follow oil and bond trends
Asian equities traded mixed Tuesday as investors kept a close eye on oil prices, bond yields, and the recent decline in Wall Street’s tech sector. Japan’s Nikkei gained 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, and Brent crude remained above $106, maintaining energy prices near multi-month highs. Following Monday’s sharp losses, Nvidia and other AI-connected firms continue to influence global technology markets.
The Federal Reserve’s September policy review runs through Wednesday, featuring updated economic forecasts. Its July statement highlighted that inflation remains above the Fed’s 2% target, citing energy-related supply shocks. U.S. gasoline prices have also increased, with the national average nearing $4.32 a gallon, up from about $4.08 a month earlier and $3.18 a year ago. U.S. markets entered Tuesday with oil prices above $100, Treasury yields approaching 5%, and technology shares under renewed pressure.