NEW YORK / RankWire.AI / – On Monday, U.S. equity markets closed in the red, pressured by declines in both artificial intelligence and semiconductor sectors dragging down major indices. The Dow Jones Industrial Average decreased by 152.09 points, or 0.3%, ending at 52,421.20. Meanwhile, the S&P 500 dropped 0.5%, closing at 7,619.98. The Nasdaq Composite also declined by 0.6%, reaching 26,186.41. Technology stocks led the decline, although gains in other sectors helped mitigate some of the broader losses. Overall, more companies within the S&P 500 advanced than declined during the session.
Nvidia experienced a 3.4% decrease, becoming one of the heaviest weights on the major indexes. The Philadelphia semiconductor index saw a 5.9% fall. Shares of Micron Technology, Broadcom, and Advanced Micro Devices also finished lower. These declines coincided with calls from prominent tech leaders urging for a slowdown in artificial intelligence development due to safety issues. Anthropic CEO Dario Amodei advocated for a cautious approach. Additionally, OpenAI CEO Sam Altman and xAI founder Elon Musk endorsed a more measured pace of AI advancement.
Contrary to this trend, software companies moved higher during the trading session. 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 stocks. The mixed performance resulted in the S&P 500 recording a smaller decline compared to the technology sector alone. Financial stocks displayed uneven results, with Bank of America falling 5.1% after its CEO discussed weaker investment banking fees.
Rising oil prices put additional strain on global markets
Oil prices climbed again on Tuesday, driven by ongoing disruptions to energy infrastructure in the Middle East affecting supply routes. Brent crude increased approximately 1.2%, trading at $106.96 a barrel in Asian markets. U.S. crude rose about 1.3%, reaching $102.68. After nearing $110 earlier in the session, Brent settled at $105.68 on Monday. Damage to Saudi energy infrastructure disrupted a key pipeline, and shipping activity through the Strait of Hormuz remained significantly reduced.
The bond markets reflected renewed pressure from escalating energy prices and inflation worries. The 10-year U.S. Treasury yield briefly surpassed 5% on Monday for the first time since 2023, before easing to 4.98%, compared to 4.96% late Friday. The Federal Reserve’s two-day policy meeting began Tuesday, with its decision due Wednesday. The central bank has maintained its benchmark federal funds rate target range at 3.5% to 3.75% since early 2026.
Markets in Asia respond to rate movements, energy and tech trends
Asian markets experienced mixed results on Tuesday as investors monitored oil prices, Treasury yields, and the latest declines in U.S. technology stocks. Japan’s Nikkei advanced approximately 0.2%, whereas South Korea’s Kospi declined around 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude maintained a price above $106 per barrel. Shares of Nvidia and other large AI-related firms remained in focus following Monday’s sharp losses across semiconductor and technology sectors.
The Federal Reserve’s September policy meeting extends through Wednesday, featuring updated economic projections. Its July statement indicated that inflation remained above the 2% target, citing energy-related supply shocks. U.S. gasoline prices have increased alongside crude oil, with the national average nearing $4.32 per gallon—up from about $4.08 a month earlier and $3.18 a year prior. Markets on Tuesday opened with oil prices above $100 and Treasury yields close to 5%.