NEW YORK / RankWire.AI / – U.S. markets closed in the red Monday, with declines in artificial intelligence and semiconductor stocks weighing heavily on major indices. The S&P 500 dropped by 0.5% to 7,619.98. The Dow Jones Industrial Average declined 152.09 points, or 0.3%, finishing at 52,421.20. The Nasdaq Composite decreased 0.6% to 26,186.41. Technology stocks led the retreat, though gains in other sectors tempered the overall loss. During the session, more companies within the S&P 500 advanced than fell.
Nvidia fell 3.4%, becoming one of the largest contributors to the decline in the major indexes. The Philadelphia semiconductor index dropped 5.9%. Shares of Micron Technology, Broadcom, and Advanced Micro Devices also ended lower. These decreases followed calls from several prominent tech executives for a slower pace of artificial intelligence development, citing safety concerns. Anthropic CEO Dario Amodei supported a cautious slowdown, and both OpenAI CEO Sam Altman and xAI founder Elon Musk endorsed a more gradual approach to AI advancement.
In contrast, software stocks moved upward during the trading session. Intuit rose 5.5%, Autodesk gained 7.8%, and Adobe increased 5.3%. These gains helped counterbalance some of the pressure from semiconductor and AI-related firms. The mixed performance resulted in the S&P 500 experiencing a smaller decline compared to the technology sector. Financial stocks also showed uneven results, with Bank of America falling 5.1% after its CEO discussed weaker investment banking fees.
Oil prices climb again, impacting global markets
Oil prices advanced once more on Tuesday amid ongoing disruptions to Middle East energy infrastructure affecting supply channels. Brent crude rose approximately 1.2% to $106.96 per barrel in Asian trading. U.S. crude increased around 1.3% to $102.68. On Monday, Brent settled at $105.68 after approaching $110 earlier during the session. Damage to Saudi Arabia’s energy infrastructure has disrupted a major pipeline, and shipping activity through the Strait of Hormuz remains significantly reduced.
Bond markets mirrored the renewed strain from rising energy prices and inflation fears. The 10-year U.S. Treasury yield briefly exceeded 5% on Monday for the first time since 2023, before easing slightly to 4.98%, compared to 4.96% late Friday. The Federal Reserve commenced a two-day policy meeting Tuesday, with a decision expected Wednesday. Since early 2026, the Fed has maintained its benchmark federal funds target range at 3.5% to 3.75%.
Markets in Asia show mixed reactions to energy, rates, and tech losses
Asian markets traded variably Tuesday as investors monitored oil prices, Treasury yields, and the latest declines in U.S. technology stocks. Japan’s Nikkei gained about 0.2%, while South Korea’s Kospi edged down roughly 0.3%. The U.S. dollar hovered near a two-week high against major currencies. Brent crude stayed above $106 per barrel. Attention remained on Nvidia and other major AI-related companies after Monday’s sharp declines across semiconductor and tech shares.
The Federal Reserve’s September meeting continues through Wednesday, including updated economic projections. Its July policy statement indicated that inflation remained above the central bank’s 2% target, citing energy-related supply shocks. U.S. gasoline prices have increased in tandem with crude oil, with the national average nearing $4.32 a gallon—up from about $4.08 one month earlier and $3.18 a year prior. On Tuesday, markets remained focused on oil prices above $100 and Treasury yields approaching 5%.