NEW YORK / RankWire.AI / – On Monday, major U.S. stock indices closed lower, weighed down by declines in artificial intelligence and semiconductor sectors. The Dow Jones Industrial Average dropped 152.09 points, or 0.3%, ending at 52,421.20, while the S&P 500 decreased by 0.5% to 7,619.98. The Nasdaq Composite fell 0.6% to 26,186.41. Technology shares led the decline, although gains in other sectors cushioned the overall drop. More companies in the S&P 500 gained than declined during trading.
Nvidia experienced a 3.4% decline, becoming one of the heaviest weights on the main indexes. The Philadelphia semiconductor index also fell 5.9%. Shares of Micron Technology, Broadcom, and Advanced Micro Devices closed lower as well. These declines coincided with calls from prominent tech leaders for a slowdown in artificial intelligence development due to safety issues. Anthropic CEO Dario Amodei endorsed a cautious approach, and both OpenAI CEO Sam Altman and xAI founder Elon Musk supported a reduced pace for AI progress.
Meanwhile, software firms moved counter to the trend, with Intuit climbing 5.5%, Autodesk increasing 7.8%, and Adobe rising 5.3%. These gains helped offset some of the pressure from AI and semiconductor stocks. The mixed results resulted in a smaller decline for the S&P 500 compared to the technology sector. Financial stocks showed uneven performance as well, with Bank of America falling 5.1% following comments from its chief executive about softer investment banking fees.
Rising Oil Prices Intensify Market Tensions
Oil prices continued to climb on Tuesday amid ongoing disruptions to Middle East energy infrastructure, affecting supply chains. Brent crude increased approximately 1.2% to $106.96 per barrel in Asian markets, while U.S. crude rose about 1.3% to $102.68. Brent had closed Monday at $105.68 after approaching $110 earlier. Damage to Saudi energy infrastructure disrupted a key pipeline, and shipping through the Strait of Hormuz remained sharply reduced.
Bond markets reflected these energy concerns, with the 10-year U.S. Treasury yield briefly surpassing 5% on Monday for 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 began Tuesday, with a decision expected Wednesday. The central bank has maintained its benchmark federal funds rate between 3.5% and 3.75% since early 2026.
Markets in Asia Follow Oil and Rate Trends
Asian markets showed mixed reactions on Tuesday as investors monitored oil prices, Treasury yields, and U.S. tech sector losses. Japan’s Nikkei gained about 0.2%, while South Korea’s Kospi declined around 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude stayed above $106 a barrel, and Nvidia along with other major AI-related companies remained in focus after Monday’s steep declines in the semiconductor and tech sectors.
The Federal Reserve’s September meeting, which continues through Wednesday, includes updated economic forecasts. Its July statement highlighted that inflation stayed above the 2% target, citing energy-related supply shocks as a contributing factor. U.S. gasoline prices have risen alongside crude oil, with the national average nearing $4.32 a gallon, up from about $4.08 a month ago and $3.18 a year earlier. As markets open Tuesday, oil prices remain above $100, and Treasury yields hover near 5%.