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Wall Street dipped on Monday, weighed down by losses in Nvidia and other chipmakers after top executives in \u200bU.S. artificial intelligence companies raised safety concerns and called for a slowdown in the development of \u200cAI.<\/strong><\/p>\n Investors were also jittery after the benchmark 10-year Treasury yield briefly surpassed 5% for the first time since 2023 ahead of this week\u2019s Federal Reserve meeting. The U.S. central bank is widely expected to raise interest rates.<\/p>\n AI-linked stocks plunged worldwide after the leaders of Anthropic, OpenAI and \u200bxAI warned of risks from rapid development, the starkest threat yet to the billions of dollars being poured \u200binto the industry that have driven markets to record highs.<\/p>\n Shares of Nvidia declined 2.6%, while \u2060Broadcom, Micron Technology, and Advanced Micro Devices each fell around 4%.<\/p>\n The PHLX chip index tumbled 5.4%, reducing its 2026 \u200bgain to 58%.<\/p>\n Brent crude futures advanced 1% to $106 as worries about energy supplies mounted following new strikes on Saudi Arabian \u200benergy infrastructure and attacks on ships in the Middle East.<\/p>\n 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 \u200bthreshold that analysts warned could ripple through the U.S. economy and threaten the bull market in stocks by denting \u200bthe relative appeal of U.S. equities.<\/p>\n Traders are pricing in a 90% chance that the Fed will raise interest rates by 25 basis points \u200cat its \u2060policy meeting on Wednesday to fight inflation related to high oil prices, according to CME\u2019s FedWatch.<\/p>\n \u201cThe 10-year going above 5% is huge and speaks volumes, and it may pressure the Fed to do more than just one rate hike,\u201d said Jake Dollarhide, CEO of Longbow Asset Management.<\/p>\n The S&P 500 was down 0.27% at 7,636.02 points.<\/p>\n The Nasdaq declined 0.10% to 26,306.65 \u200bpoints, while the Dow Jones \u200bIndustrial Average was down 0.27% \u2060at 52,433.44 points.<\/p>\n ServiceNow, Adobe, and Workday rallied between 4% and 8%. Those and other software stocks have sold off in recent sessions over worries that competition from AI companies \u200bcould hurt their margins.<\/p>\n The S&P 500\u2019s recent decline, coupled with a strong earnings outlook, has \u200bthe benchmark trading \u2060at 19 times expected earnings. That is its cheapest since April 2025, when U.S. President Donald Trump\u2019s \u201cLiberation Day\u201d tariff announcements threw global markets into a tailspin.<\/p>\n Eight of the 11 S&P 500 sector indexes declined, led lower by industrials down 1.59%, followed \u2060by a \u200b1.22% loss in utilities.<\/p>\n Advancing issues outnumbered falling ones within the S&P 500 \u200bby a 1.1-to-one ratio.<\/p>\n The S&P 500 posted nine new highs and eight new lows; the Nasdaq recorded 41 new highs and 174 new lows.<\/p>\n<\/div>\n