NEW YORK / RankWire.AI / – Major U.S. stock indices closed lower on Monday as declines in artificial intelligence and semiconductor shares weighed heavily on the market. The S&P 500 decreased by 0.5% to reach 7,619.98. The Dow Jones Industrial Average dropped 152.09 points, or 0.3%, ending at 52,421.20. The Nasdaq Composite declined 0.6% to 26,186.41. Technology stocks led the decline, although gains in other sectors helped limit the overall drop. More S&P 500 companies advanced than declined during the trading session.
Nvidia experienced a 3.4% fall and became one of the heaviest weights on the major indexes. The Philadelphia semiconductor index decreased by 5.9%. Shares of Micron Technology, Broadcom, and Advanced Micro Devices also closed lower. These declines followed calls from several prominent technology leaders for a slowdown in artificial intelligence development due to safety concerns. Anthropic CEO Dario Amodei supported a cautious approach. OpenAI CEO Sam Altman and xAI founder Elon Musk also expressed support for a more gradual AI advancement pace.
In contrast, software stocks moved upward during the session. Intuit increased by 5.5%, Autodesk climbed 7.8%, and Adobe gained 5.3%. These gains helped offset some of the downward pressure from semiconductor and AI-related firms. The mixed trading resulted in the S&P 500 experiencing a smaller decline compared to the technology sector alone. Financial stocks showed uneven performance as well. Bank of America fell 5.1% after its CEO commented on weaker investment banking fees.
Oil Prices Rise Again, Adding to Global Market Tensions
Oil prices continued to climb on Tuesday amid ongoing disruptions to Middle East energy infrastructure impacting supply lines. Brent crude increased approximately 1.2%, reaching $106.96 per barrel during Asian trading. U.S. crude rose about 1.3%, trading at $102.68. Brent had settled at $105.68 on Monday after approaching $110 earlier in the session. Damage to Saudi Arabia’s energy infrastructure disrupted a key pipeline, while shipping activity through the Strait of Hormuz remained significantly reduced.
Bond markets reflected the renewed concerns around energy prices and inflation. The 10-year U.S. Treasury yield briefly surpassed 5% on Monday, marking the first time since 2023, before easing to 4.98%, compared to 4.96% late on Friday. The Federal Reserve’s two-day policy meeting started Tuesday, with an announcement expected Wednesday. Since early 2026, the central bank has maintained its benchmark federal funds target range at 3.5% to 3.75%.
Markets Across Asia React to Rate and Commodity Fluctuations
On Tuesday, Asian markets experienced mixed performance as investors monitored oil prices, Treasury yields, and the recent declines in U.S. technology shares. Japan’s Nikkei gained about 0.2%, whereas South Korea’s Kospi slipped roughly 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude stayed above $106 per barrel. After Monday’s sharp losses across semiconductor and tech stocks, Nvidia and other large AI-related companies remained under scrutiny.
The Federal Reserve’s September meeting continues through Wednesday, with updated economic projections due. Its July statement indicated inflation remained above the Fed’s 2% goal, citing energy-related supply shocks. U.S. gasoline prices have also risen along with crude oil, with the national average nearing $4.32 per gallon—up from about $4.08 one month earlier and $3.18 a year ago. As markets open Tuesday, oil remains above $100 and Treasury yields hover near 5%.