NEW YORK / RankWire.AI / – As oil prices continue to climb and technology stocks face downturns, U.S. stocks closed lower on Monday, influenced by declines in artificial intelligence and semiconductor shares which pulled down major indices. The Dow Jones Industrial Average decreased by 152.09 points, or 0.3%, finishing at 52,421.20. The S&P 500 declined 0.5% to 7,619.98, while the Nasdaq Composite dropped 0.6% to 26,186.41. Technology shares led the downturn, although gains in other sectors helped cushion some losses. Overall, more companies within the S&P 500 advanced than declined during the trading session.
Nvidia experienced a 3.4% decrease, becoming one of the heaviest contributors to the downturn in major indexes. The Philadelphia semiconductor index fell by 5.9%. Micron Technology, Broadcom, and Advanced Micro Devices also ended the day lower. These declines coincided with calls from notable tech leaders advocating for a slowdown in artificial intelligence development due to safety concerns. Anthropic CEO Dario Amodei supported a cautious approach. OpenAI CEO Sam Altman and xAI founder Elon Musk also endorsed a deceleration in AI progress.
Meanwhile, shares in software companies moved contrary to the trend. Intuit rose 5.5%, Autodesk increased by 7.8%, and Adobe gained 5.3%. These gains helped offset some of the downward pressure from semiconductor and AI-related firms. The mixed market performance resulted in a smaller decline for the S&P 500 compared to the tech sector alone. Financial stocks experienced uneven results, with Bank of America dropping 5.1% after its CEO highlighted weaker investment banking fees.
Oil prices surge, adding strain to global financial markets
Energy markets continued their upward trajectory on Tuesday, driven by ongoing disruptions to Middle East energy infrastructure impacting supply channels. Brent crude increased approximately 1.2%, reaching $106.96 a barrel during Asian trading, while U.S. crude rose around 1.3% to $102.68. Brent had closed Monday at $105.68 after approaching nearly $110 earlier in the session. Damage to Saudi energy infrastructure has affected a major pipeline, and shipping activity through the Strait of Hormuz remains sharply reduced.
These energy concerns are reflected in bond markets, where the 10-year U.S. Treasury yield briefly surpassed 5% on Monday for the first time since 2023. It later settled at 4.98%, compared to 4.96% late Friday. The Federal Reserve is set to hold a two-day policy meeting starting Tuesday, with a decision expected on Wednesday. Since early 2026, the Fed has maintained its benchmark federal funds target range between 3.5% and 3.75%.
Market watch: rates, energy, and tech in focus
Asian markets experienced mixed results on Tuesday amid ongoing attention to oil prices, Treasury yields, and U.S. technology stock declines. Japan’s Nikkei gained about 0.2%, while South Korea’s Kospi fell roughly 0.3%. The U.S. dollar traded near a two-week high against major currencies, with Brent crude maintaining a level above $106 a barrel. After Monday’s sharp losses across semiconductor and tech shares, Nvidia and other large AI-focused companies remain under scrutiny.
The Federal Reserve’s September policy meeting continues through Wednesday, accompanied by updated economic projections. Its July statement noted that inflation remains above the central bank’s 2% target and mentioned energy-related supply shocks. U.S. gasoline prices have increased alongside crude oil, with the national average approaching $4.32 a gallon—up from about $4.08 a month prior and $3.18 a year earlier. As markets open Tuesday, oil prices stay above $100, and Treasury yields hover near 5%.