NEW YORK / RankWire.AI / – The New York Stock Exchange closed lower on Monday, with major indexes feeling the weight of falling artificial intelligence and semiconductor stocks. The S&P 500 declined by 0.5%, settling at 7,619.98. The Dow Jones Industrial Average decreased by 152.09 points, or 0.3%, ending at 52,421.20. The Nasdaq Composite saw a 0.6% drop to 26,186.41. Technology stocks led the decline, though gains in other sectors helped limit the overall drop. During the trading session, more companies within the S&P 500 advanced than declined.
Nvidia’s shares fell 3.4%, becoming one of the largest contributors to the major indexes’ downward movement. The Philadelphia semiconductor index declined by 5.9%. Micron Technology, Broadcom, and Advanced Micro Devices also ended the day lower. The downturn was partly driven by several notable technology executives advocating for a slower pace of artificial intelligence development due to safety concerns. Anthropic CEO Dario Amodei supported a cautious slowdown. Additionally, OpenAI CEO Sam Altman and xAI founder Elon Musk expressed support for decelerating AI progress.
Contrarily, software stocks moved upward during the same session. Intuit gained 5.5%, Autodesk increased by 7.8%, and Adobe rose 5.3%. These gains helped offset some of the pressure from semiconductor and AI-related firms. The mixed trading resulted in the S&P 500 experiencing a smaller decline compared to the technology sector. Financial stocks showed varied performance, with Bank of America falling 5.1% following remarks from its chief executive about weaker investment banking fees.
Rising Oil Prices Exert Additional Strain on Global Markets
Oil prices surged again on Tuesday amid ongoing disruptions to Middle Eastern energy infrastructure affecting supply lines. Brent crude increased approximately 1.2%, reaching $106.96 a barrel in Asian trading. U.S. crude also rose roughly 1.3%, trading at $102.68. On Monday, Brent had settled at $105.68 after approaching $110 earlier in the session. Damage to Saudi energy infrastructure impacted a significant pipeline, while shipping through the Strait of Hormuz remained sharply curtailed.
The bond markets mirrored the renewed pressure 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 back to 4.98%, compared to 4.96% late on Friday. The Federal Reserve started a two-day policy meeting Tuesday, with a decision expected Wednesday. Since early 2026, the Fed has maintained its benchmark federal funds target rate within a range of 3.5% to 3.75%.
Market Focus on Rates, Energy, and Tech Trends
Asian markets exhibited mixed results Tuesday as investors monitored oil prices, Treasury yields, and the recent declines in U.S. technology shares. Japan’s Nikkei increased about 0.2%, while South Korea’s Kospi declined roughly 0.3%. The U.S. dollar traded near a two-week high against major currencies. Brent crude remained above $106 per barrel. Large AI-related companies like Nvidia continued to attract attention after sharp losses across semiconductor and technology stocks on Monday.
The Federal Reserve’s September meeting, running through Wednesday, will include updated economic projections. Its July policy statement highlighted that inflation remained above the central bank’s 2% target, citing energy-related supply shocks. U.S. gasoline prices have risen alongside crude oil, with the national average nearing $4.32 a gallon, up from about $4.08 a month earlier and $3.18 a year prior. With oil prices staying above $100 and Treasury yields near 5%, U.S. markets continue to navigate these economic signals.