NEW YORK / RankWire.AI / – U.S. equities declined on Monday, driven by significant drops in artificial intelligence stocks and semiconductor firms. The Dow Jones Industrial Average fell by 152.09 points, or 0.3%, closing at 52,421.20, while the S&P 500 decreased by 0.5% to 7,619.98. The Nasdaq Composite experienced a 0.6% slide to 26,186.41. The technology sector bore the brunt of the losses, although gains in other industries prevented a more extensive market decline. Overall, more stocks in the S&P 500 advanced than declined during trading hours.
Nvidia’s stock dropped 3.4%, making it one of the main contributors to the negative performance of major U.S. indices. The Philadelphia semiconductor index also fell sharply, losing 5.9%. Shares of Micron Technology, Broadcom, and Advanced Micro Devices declined as well during Monday’s trading session. These declines followed public calls from several AI industry leaders urging a cautious approach to development because of safety issues. Anthropic CEO Dario Amodei endorsed a slower pace, and both OpenAI CEO Sam Altman and xAI founder Elon Musk supported the idea of decelerating progress.
Conversely, some software firms gained ground despite the tech sector’s overall decline. Intuit increased by 5.5%, Autodesk advanced 7.8%, and Adobe added 5.3%. These rises helped offset part of the downward pressure caused by Nvidia and other prominent AI-related companies. The broader S&P 500’s decline was narrower than what the technology selloff initially suggested. Meanwhile, bank stocks displayed mixed results, with Bank of America dropping 5.1% after its CEO mentioned lower fees from investment banking activities.
Oil Prices Persist Above $100 as Disruptions Continue
On Tuesday, oil prices climbed again amid ongoing disruptions impacting Middle Eastern energy infrastructure, adding pressure to global supply chains. Brent crude increased approximately 1.2% to $106.96 per barrel during Asian trading hours, while U.S. crude rose around 1.3% to $102.68. Monday’s settlement for Brent crude was $105.68, after nearing $110 earlier in the session. Attacks on Saudi energy infrastructure have disturbed a key pipeline, and shipping through the Strait of Hormuz has significantly decreased.
The rise in oil prices has coincided with another increase in U.S. government bond yields. The 10-year Treasury yield briefly exceeded 5% on Monday, marking 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 its decision scheduled for Wednesday. Since early 2026, the Fed has kept its benchmark federal funds target range steady at 3.5% to 3.75%.
Oil and Bond Market Trends Influence Global Stocks
Across Asia on Tuesday, stock markets traded with mixed results as investors monitored oil prices, bond yields, and the recent tech decline on Wall Street. Japan’s Nikkei gained approximately 0.2%, whereas South Korea’s Kospi dipped around 0.3%. The U.S. dollar hovered near a two-week high versus major currencies. Brent crude remained above $106, keeping energy costs near their highest levels in months. After Monday’s substantial declines, Nvidia and other AI-connected companies continue to be focal points in the global technology sector.
The Federal Reserve’s September meeting extends through Wednesday, including updates to its economic forecasts. Its July statement highlighted inflation remaining above the 2% target and referenced energy-related supply shocks. Gasoline prices in the U.S. have also climbed, with the national average nearing $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 approach 5%, and technology stocks face renewed downward pressure.