NEW YORK / RankWire.AI / – On Monday, U.S. equities closed lower, weighed down by drops in the shares of artificial intelligence and semiconductor companies, which pushed major indices downward. The Dow Jones Industrial Average declined by 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 also fell, dropping 0.6% to 26,186.41. Technology stocks primarily led the decline, yet gains from other sectors helped limit the overall fall, resulting in more companies in the S&P 500 advancing than declining during the trading session.
Nvidia was among the heaviest weights on the major indexes, decreasing by 3.4%, and the Philadelphia semiconductor index experienced a significant drop of 5.9%. Shares of Micron Technology, Broadcom, and Advanced Micro Devices also ended the day lower. The decline was partly driven by calls from notable technology leaders for a slowdown in artificial intelligence development due to safety concerns. Anthropic CEO Dario Amodei advocated for a careful slowdown, while OpenAI CEO Sam Altman and xAI founder Elon Musk expressed support for a more cautious pace in AI development.
Conversely, software stocks moved counter to the trend during the session. Intuit increased by 5.5%, Autodesk gained 7.8%, and Adobe rose 5.3%, helping to offset some of the downward pressure exerted by semiconductor and AI-related firms. This mixed performance resulted in the S&P 500 experiencing a smaller decline compared to the technology sector. Financial stocks showed uneven results as well, with Bank of America dropping 5.1% after its chief executive discussed weaker investment banking fees.
Oil prices climb, exerting pressure on global markets
Oil prices increased again on Tuesday amid ongoing disruptions to Middle Eastern energy infrastructure that continue to impact supply routes. Brent crude rose approximately 1.2%, reaching $106.96 a barrel in Asian trading, while U.S. crude gained about 1.3% to $102.68. After approaching $110 earlier in the day, Brent settled at $105.68 on Monday. Damage to Saudi energy infrastructure disrupted a major pipeline, and shipping activity through the Strait of Hormuz also remained significantly reduced.
These developments heightened concerns over inflation and influenced bond markets, with the 10-year U.S. Treasury yield briefly exceeding 5% on Monday for the first time since 2023. It later receded to 4.98%, compared to 4.96% late on Friday. The Federal Reserve’s two-day policy meeting began Tuesday, with an announcement scheduled for Wednesday. The central bank has maintained its benchmark federal funds target range at 3.5% to 3.75% since early 2026.
Markets in Asia Show Mixed Responses as Rate and Oil Movements Persist
On Tuesday, Asian markets reflected cautious trading as investors monitored oil prices, Treasury yields, and the recent declines in U.S. technology stocks. Japan’s Nikkei saw a modest increase of about 0.2%, while South Korea’s Kospi dipped approximately 0.3%. The U.S. dollar traded near a two-week high against major currencies, and Brent crude continued to stay above $106 a barrel. After Monday’s sharp losses in semiconductor and technology shares, Nvidia and other large AI-related companies remained in the spotlight.
The Federal Reserve’s September meeting extends through Wednesday and includes updated economic projections. Its July policy statement indicated that inflation remained above the central bank’s 2% target, citing energy-related supply shocks as a contributing factor. Meanwhile, U.S. gasoline prices have risen alongside crude oil, with the national average nearing $4.32 a gallon, up from about $4.08 one month earlier and $3.18 a year earlier. As markets open on Tuesday, oil remains above $100, and Treasury yields are close to 5%.