US STOCKS-Wall Street ends down, calls for AI slowdown pummel chipmakers

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14/09/2026 21:00

Chipmakers drop after call for slower AI development
10-year yield climbs above 5%
S&P 500 PE dips to its lowest since April 2025
Updates with market close
By Noel Randewich
Sept 14 (Reuters) - Wall Street ended down on Monday, weighed down by losses in Nvidia and other chipmakers after top executives in U.S. artificial intelligence companies raised safety concerns and called for a slowdown in the development of AI.
Investors were also jittery after the benchmark 10-year Treasury yield briefly surpassed 5% for the first time since 2023 ahead of this week's Federal Reserve meeting. The U.S. central bank is widely expected to raise interest rates.
AI-linked stocks plunged worldwide after the leaders of Anthropic, OpenAI and xAI warned of risks from rapid development, the starkest threat yet to the billions of dollars being poured into the industry that have driven markets to record highs.
Shares of Nvidia NVDA.O, Broadcom AVGO.O, Micron Technology MU.O and Advanced Micro Devices AMD.O declined, and the PHLX chip index .SOX fell sharply. 
Brent crude futures LCOc1 settled 1% higher at $105.68 per barrel as worries about energy supplies mounted following new strikes on Saudi Arabian energy infrastructure and attacks on ships in the Middle East.
High inflation, heavy corporate and government borrowing and concerns about the long-term U.S. fiscal trajectory have sent U.S. Treasury yields higher in the past month. The 5% mark that the 10-year yield hit on Monday is a threshold that analysts warned could ripple through the U.S. economy and threaten the bull market in stocks by denting the relative appeal of U.S. equities.
Traders are pricing in a 90% chance that the Fed will raise interest rates by 25 basis points at its policy meeting on Wednesday to fight inflation related to high oil prices, according to CME's FedWatch.
"The 10-year going above 5% is huge and speaks volumes, and it may pressure the Fed to do more than just one rate hike," said Jake Dollarhide, CEO of Longbow Asset Management.
According to preliminary data, the S&P 500 .SPX lost 36.93 points, or 0.48%, to end at 7,620.05 points, while the Nasdaq Composite .IXIC lost 145.25 points, or 0.55%, to 26,187.79. The Dow Jones Industrial Average .DJI fell 151.66 points, or 0.29%, to 52,421.63.
ServiceNow NOW.N, Adobe ADBE.O and Workday WDAY.O rallied. Those and other software stocks have sold off in recent sessions over worries that competition from AI companies could hurt their margins.
Bank of America BAC.N dipped after CEO Brian Moynihan said he expects investment banking fees to drop by at least 10% in the third quarter.
The S&P 500's recent decline, coupled with a strong earnings outlook, has the benchmark trading at 19 times expected earnings. That is its cheapest since April 2025, when U.S. President Donald Trump's "Liberation Day" tariff announcements threw global markets into a tailspin.

S&P 500 components in 2026 https://fingfx.thomsonreuters.com/gfx/mkt/dwpkmrlkdpm/Pasted%20image%201789400282266.png
 (Reporting by Niket Nishant and Tharuniyaa Lakshmi in Bengaluru; Editing by Sherry Jacob-Phillips, Pooja Desai and David Gregorio)
 ((Niket.Nishant@thomsonreuters.com;))