NEW YORK / RankWire.AI / – U.S. equities closed lower Monday, pressured by declines in AI and semiconductor sectors. The S&P 500 decreased by 0.5% to reach 7,619.98. The Dow Jones Industrial Average fell 152.09 points, or 0.3%, to 52,421.20. The Nasdaq Composite declined 0.6% to 26,186.41. Technology stocks led the downside, but gains in other sectors helped limit the overall fall. More companies in the S&P 500 advanced than declined during trading.
Nvidia dropped 3.4%, becoming one of the heaviest weights on major indexes. The Philadelphia semiconductor index decreased by 5.9%. Micron Technology, Broadcom, and Advanced Micro Devices also ended lower. The declines followed calls from prominent tech leaders for a slower pace of AI development due to safety concerns. Anthropic CEO Dario Amodei supported a cautious approach. OpenAI CEO Sam Altman and xAI founder Elon Musk also endorsed a slower development trajectory for AI.
In contrast, software stocks moved upward during the session. Intuit increased by 5.5%, Autodesk gained 7.8%, and Adobe rose 5.3%. These gains helped counter some of the downward pressure from semiconductor and AI-related companies. The mixed trading resulted in the S&P 500 having a smaller decline than the technology sector. Financial stocks showed uneven performance as well. Bank of America fell 5.1% after its CEO mentioned weaker investment banking fees.
Oil Prices Continue Rising, Impacting Global Markets
Oil prices climbed again on Tuesday amid ongoing disruptions to Middle Eastern energy infrastructure. Brent crude rose about 1.2% to $106.96 per barrel in Asian trading. U.S. crude increased approximately 1.3% to $102.68. On Monday, Brent settled at $105.68 after approaching $110 earlier in the day. Damage to Saudi energy facilities disrupted a key pipeline. Shipping through the Strait of Hormuz also remained significantly reduced.
Bond markets reflected the renewed pressure from rising energy costs and inflation worries. The 10-year U.S. Treasury yield briefly exceeded 5% on Monday, the first time since 2023. It later decreased to 4.98%, up from 4.96% late Friday. The Federal Reserve started a two-day policy meeting Tuesday, with a decision expected on Wednesday. The Fed has maintained its benchmark federal funds target range at 3.5% to 3.75% since early 2026.
Markets Focus on Rates, Energy and Tech Movements
Asian markets traded mixed Tuesday as investors monitored oil prices, Treasury yields, and U.S. tech stock declines. Japan’s Nikkei gained about 0.2%, while South Korea’s Kospi slipped around 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude stayed above $106 a barrel. Nvidia and other large AI-linked firms remained in focus after Monday’s sharp losses across semiconductor and technology shares.
The Federal Reserve’s September meeting continues through Wednesday, with updated economic forecasts expected. Its July statement noted that inflation remained above the 2% target. It also mentioned energy-related supply shocks. U.S. gasoline prices have risen alongside crude oil, with the national average nearing $4.32 a gallon. That’s up from about $4.08 one month earlier and $3.18 a year ago. Markets entered Tuesday with oil prices above $100 and Treasury yields close to 5%.