US stocks fell on Monday as weakness in AI-related shares and higher oil prices weighed on sentiment ahead of this week’s Federal Reserve meeting.
The S&P 500 declined 0.48% to 7,619.98, the Nasdaq Composite fell 0.56% to 26,186.41 and the Dow Jones Industrial Average dropped 152.09 points, or 0.29%, to 52,421.20.
Technology stocks came under pressure after Anthropic CEO Dario Amodei called for a slowdown in the development of advanced AI models due to safety concerns, while OpenAI CEO Sam Altman said an IPO this year would be “ill-advised”. Nvidia fell 3%, Broadcom and AMD lost more than 4%, Intel dropped more than 5% and Marvell declined more than 7%.
Treasury yields initially jumped ahead of the Fed meeting before easing, with the US 10-year yield ending around 4.99%. Markets are pricing about a 92% probability of a 25-basis-point rate increase this week.
Oil prices rose after Saudi Arabia shut a key pipeline that bypasses the Strait of Hormuz. WTI gained 1.34% to US$101.39 a barrel, while Brent rose 1.02% to US$105.68.
Australian Market Outlook
Australian shares face a cautious start after the S&P/ASX 200 edged 0.1% higher to 8,640.70 in the previous session, snapping a multi-session losing streak Financials led the rebound as Commonwealth Bank recovered from its sharp decline a day earlier, while strength among major miners also supported the index. BHP and Rio Tinto reached record highs as copper traded at record levels and iron ore remained above US$110. Attention now turns to the Federal Reserve’s September policy decision, with the outlook for US rates, bond yields and oil prices likely to remain key drivers for the Australian market.
