NEW YORK / RankWire.AI / – On Monday, U.S. equities ended in the red as sharp declines in artificial intelligence shares and chip stocks weighed on the markets. The S&P 500 decreased by 0.5% to close at 7,619.98. The Dow Jones Industrial Average fell by 152.09 points, or 0.3%, finishing at 52,421.20. Meanwhile, the Nasdaq Composite declined 0.6% to 26,186.41. The decline was primarily concentrated in the technology sector, although gains in other areas helped limit the broader market’s drop. More stocks within the S&P 500 gained than lost during the trading session.
Leading the declines, Nvidia fell 3.4%, significantly impacting major U.S. indices. The Philadelphia semiconductor index experienced a notable 5.9% drop. Other chipmakers like Micron Technology, Broadcom, and Advanced Micro Devices also saw losses on Monday. These movements followed public calls from prominent AI executives urging caution and slowing down development due to safety concerns. Anthropic CEO Dario Amodei called for a deliberate approach to development. Supporting this stance, OpenAI CEO Sam Altman and xAI founder Elon Musk also backed a slowdown in progress.
Despite the semiconductor sector’s setbacks, several software companies gained ground, helping to offset some of the pressure from Nvidia and other AI-related firms. Intuit rose 5.5%, Autodesk increased by 7.8%, and Adobe moved up 5.3%. These gains mitigated part of the negative impact from the tech selloff. The overall decline of the S&P 500 was thus narrower than what the technology sector’s downturn might have suggested. Banking stocks showed mixed results; however, Bank of America dropped 5.1% after its CEO discussed a decline in investment banking fees.
Oil Prices Persist Above $100 Amid Ongoing Middle East Disruptions
Oil prices continued their upward trajectory on Tuesday, driven by ongoing disruptions in Middle East energy infrastructure that continue to threaten global supply channels. During Asian trading, Brent crude increased roughly 1.2% to $106.96 per barrel, while U.S. crude advanced about 1.3% to $102.68. On Monday, Brent settled at $105.68 after reaching nearly $110 earlier in the session. The recent attacks on Saudi energy facilities have disrupted a major pipeline, and shipping activity through the Strait of Hormuz has significantly declined, adding to supply concerns.
The rise in oil prices coincides with another uptick in U.S. government bond yields. The 10-year Treasury yield briefly surpassed 5% on Monday for the first time since 2023, before easing back to 4.98%, compared to 4.96% late Friday. As the Federal Reserve begins a two-day policy meeting on Tuesday, market participants await its decision expected on Wednesday. Since the start of 2026, the Federal Reserve has maintained its benchmark federal funds rate in the range of 3.5% to 3.75%.
Global Markets Respond to Oil and Bond Market Movements
Asian markets showed mixed reactions on Tuesday as investors continued to monitor oil prices, bond yields, and the recent declines in U.S. technology stocks. The Nikkei in Japan gained about 0.2%, whereas South Korea’s Kospi declined approximately 0.3%. The U.S. dollar traded near a two-week high against major currencies. Meanwhile, Brent crude remained above $106, keeping energy prices at their highest points in months. After Monday’s sharp selloff, Nvidia and other AI-related companies remain central to global technology market movements, reflecting ongoing concerns about sector performance.
The Federal Reserve’s September meeting runs through Wednesday, during which updated economic projections will be released. The July statement indicated that inflation stayed above the Fed’s 2% target and cited energy-related supply shocks as contributing factors. U.S. gasoline prices have also increased, with the national average nearing $4.32 per gallon—up from about $4.08 a month earlier and $3.18 a year ago. As markets open on Tuesday, oil remains above $100, Treasury yields hover near 5%, and technology shares face renewed downward pressure.