NEW YORK / RankWire.AI / – On Monday, U.S. equity markets finished lower, driven by significant drops in artificial intelligence stocks and chip manufacturing firms. The S&P 500 declined by 0.5% to close at 7,619.98. The Dow Jones Industrial Average decreased by 152.09 points, representing a 0.3% dip to 52,421.20. Meanwhile, the Nasdaq Composite fell 0.6% to 26,186.41. The losses were concentrated in the technology sector, though gains elsewhere helped limit the overall market decline. During the session, more stocks in the S&P 500 rose than declined.
In early trading, Nvidia experienced a 3.4% decrease, becoming one of the heaviest weights on major U.S. indexes. The Philadelphia semiconductor index dropped by 5.9%. Shares of Micron Technology, Broadcom, and Advanced Micro Devices also declined on Monday. These movements followed open calls from prominent AI executives urging caution and a slowdown in development due to safety worries. Anthropic CEO Dario Amodei emphasized a careful approach, while OpenAI CEO Sam Altman and xAI founder Elon Musk echoed support for decelerating progress.
Despite the weakness in semiconductor stocks, several software firms posted gains. Intuit rose by 5.5%, Autodesk increased 7.8%, and Adobe gained 5.3%. These advances partially offset the downward pressure exerted by Nvidia and other large AI-related companies. The overall session resulted in a narrower decline for the S&P 500 than the technology selloff initially indicated. Meanwhile, banking stocks showed mixed results, with Bank of America falling 5.1% after its chief executive discussed reduced investment banking fees.
Oil continues to stay above $100 amid ongoing disruptions
Tuesday saw oil prices rise once again as ongoing disturbances to Middle Eastern energy infrastructure persisted, affecting global supply pathways. During Asian trading, Brent crude increased approximately 1.2% to $106.96 per barrel. U.S. crude rose about 1.3% to $102.68. Monday’s settlement for Brent was at $105.68, after nearing $110 earlier during the session. Attacks on Saudi energy facilities have disrupted a major pipeline, and shipping through the Strait of Hormuz has sharply decreased.
Rising oil prices have coincided with a further increase in U.S. government bond yields. The 10-year Treasury yield briefly surpassed 5% Monday, marking the first time since 2023, before easing to 4.98%, compared to 4.96% late Friday. The Federal Reserve begins a two-day policy meeting Tuesday, with an announcement scheduled for Wednesday. Since the start of 2026, the Fed has kept its benchmark federal funds rate in the range of 3.5% to 3.75%.
Global markets respond to oil and bond yield movements
Markets across Asia traded with mixed results on Tuesday, as investors monitored oil prices, bond yields, and the recent decline in U.S. technology stocks. Japan’s Nikkei gained about 0.2%, while South Korea’s Kospi slipped around 0.3%. The U.S. dollar hovered near a two-week high against major currencies. Brent crude continued to stay above $106, maintaining energy prices at their highest levels in recent months. After Monday’s sharp declines, Nvidia and other AI-focused companies remained central to global technology market trends.
The Federal Reserve’s September policy meeting extends through Wednesday, with updated economic projections on the agenda. In its July statement, the central bank noted that inflation remained above its 2% target, citing energy-related supply shocks. U.S. gasoline prices have also risen, with the national average approaching $4.32 a 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 near 5%, and technology stocks face renewed downward pressure.