US stocks today: US stocks slip as AI fears weigh on software, while oil and rate bets add pressure
The S&P 500 fell 0.58% to 7,673.94, while the Nasdaq Composite declined 0.31% to 26,423.69. The Dow Jones Industrial Average was the biggest laggard, dropping 1.16% to 52,797.10.
Software stocks were among the main drags on the market. Salesforce, ServiceNow and Intuit fell, sending the S&P 500 software and services index lower for a second straight session.
The latest selling followed OpenAI’s launch of its newest model, GPT-6 Astra, which has revived concerns that increasingly capable AI systems could compete with products and services offered by specialized software companies.
“Astra has kind of reignited the software disruption fears and it’s resumed that old trend that we got used to for a while, where semiconductor stocks and data center capex beneficiaries do well, while software stocks do poorly,” said Jed Ellerbroek, portfolio manager at Argent Capital Management, according to Reuters.
The contrast was particularly visible across technology. Intel rose sharply and Qualcomm gained after reaching a deal with Amazon to develop custom AI chips, highlighting the continued investor preference for companies positioned to benefit directly from the expansion of AI infrastructure.
The broader market was also dealing with renewed inflation and geopolitical concerns.Oil prices touched a six-week high after Iran-backed Houthis in Yemen attacked Saudi energy facilities, setting oil installations ablaze and raising the risk of a wider Middle East conflict. Shipping traffic through the Strait of Hormuz also slowed after Iran threatened retaliation for any new U.S. attacks.
“The conflict between the United States and Iran is beginning to look less like a temporary disruption and more like a longer-term backdrop for markets,” said Jeff DerGurahian, chief investment officer at loanDepot, according to Reuters.
That rise in oil prices comes at a sensitive point for markets. Investors are awaiting producer and consumer price data this week for clues on whether inflation pressures are continuing to ease before the Federal Reserve’s September 15-16 policy meeting.
Traders now see a 60% chance of an interest rate increase next week, according to the CME FedWatch tool, after stronger-than-expected August employment data boosted expectations for tighter monetary policy.
Higher Treasury yields are adding another layer of pressure. Elevated returns on U.S. government bonds have made equities relatively less attractive, particularly as investors reassess the outlook for interest rates.
Despite Tuesday’s decline, the S&P 500 remains up about 12% in 2026 and is roughly 1% below its record close from August 13. Its valuation has also eased to 19 times expected earnings from 21 times in early June, according to LSEG data cited by Reuters.
Energy stocks bucked the broader market decline, with the S&P 500 energy index rising alongside gains in Marathon Petroleum and Occidental Petroleum.
Apple also fell ahead of an event where it is expected to unveil its latest smartphone under new CEO John Ternus. Crypto-related stocks declined as bitcoin retreated from $80,000, with Coinbase and Strategy among the decliners.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
