NEW YORK / RankWire.AI / – US stock indices ended the day in the red on Monday as shares linked to artificial intelligence and chip manufacturing experienced significant declines. The Dow Jones Industrial Average decreased by 152.09 points, or 0.3%, closing at 52,421.20. The Nasdaq Composite dropped 0.6% to finish at 26,186.41. The technology sector bore the brunt of the losses, though gains in other sectors helped limit the overall market downturn. Throughout the session, more stocks within the S&P 500 rose than declined.
Nvidia experienced a 3.4% decline, making it one of the largest weightings contributing to the downward pressure on major US indexes. The Philadelphia semiconductor index decreased by 5.9%. Shares of Micron Technology, Broadcom, and Advanced Micro Devices also fell during Monday’s trading. These moves came after several leading AI executives publicly called for a slowdown in development due to safety concerns. Anthropic CEO Dario Amodei advocated a cautious approach, and both OpenAI CEO Sam Altman and xAI founder Elon Musk expressed support for decelerating progress.
Meanwhile, some software firms advanced despite the semiconductor sector’s struggles. Intuit gained 5.5%, Autodesk increased by 7.8%, and Adobe moved up 5.3%. These gains helped offset part of the declines driven by Nvidia and other major AI-related companies. As a result, the overall decline in the S&P 500 was less severe than what the technology selloff implied. Bank stocks showed mixed performance, with Bank of America falling 5.1% after its chief executive discussed a decrease in investment banking fees.
Oil prices remain above $100 amid ongoing disruptions
Oil prices continued their upward trend on Tuesday, supported by ongoing disruptions affecting energy infrastructure in the Middle East. Brent crude rose approximately 1.2% to $106.96 a barrel during Asian trading hours. US crude increased about 1.3% to $102.68. On Monday, Brent settled at $105.68 after nearing $110 earlier in the day. Attacks on Saudi Arabia’s energy facilities have disrupted a key pipeline, and shipping through the Strait of Hormuz has significantly declined.
The rise in oil prices has coincided with a renewed increase in US government bond yields. The 10-year Treasury yield briefly surpassed 5% on Monday, marking the first time since 2023. It later eased back to 4.98%, from 4.96% late on Friday. The Federal Reserve is set to commence a two-day policy meeting on Tuesday, with its decision expected Wednesday. Since early 2026, the Fed has maintained its benchmark federal funds rate in the range of 3.5% to 3.75%.
Global markets move in response to oil and bond yield fluctuations
Asian stock markets exhibited mixed results on Tuesday as investors kept a close watch on oil prices, bond yields, and the recent decline in US technology stocks. Japan’s Nikkei increased about 0.2%, while South Korea’s Kospi dipped roughly 0.3%. The US dollar traded near a two-week high against major currencies. Brent crude stayed above $106, keeping energy prices near levels not seen in months. After Monday’s steep declines, Nvidia and other AI-related companies continued to be central to global tech market movements.
The Federal Reserve’s September meeting extends through Wednesday and includes updated economic projections. Its July statement noted that inflation remained above the 2% goal and highlighted energy-related supply shocks as a contributing factor. US gasoline prices have also risen, with the national average nearing $4.32 a gallon, compared to about $4.08 a month earlier and $3.18 a year earlier. As US markets open Tuesday, oil remains above $100, Treasury yields hover near 5%, and technology stocks face renewed pressure.