This Week on Wall Street

Stocks pulled back Monday as calls from AI industry leaders to slow frontier-model development slammed chipmakers, dragging the S&P 500 down 0.48% to 7,619.98, the Nasdaq Composite down 0.56% to 26,186.41, and the Dow Jones off 0.29% to 52,421.20, with Nvidia, AMD, and Micron among the hardest-hit chip names. Escalating fighting in the Gulf and a strike on a major Saudi pipeline pushed WTI crude up near $102 a barrel, while the 10-year Treasury yield briefly topped 5% for the first time since 2023 before settling near 4.98%. Energy and Communication Services led sectors Monday as oil surged and megacaps held up, while Technology and Real Estate lagged under the weight of the chip selloff and rate-sensitive selling. The VIX rose to 17.43 and the CNN Fear & Greed Index slipped to 30 (Fear) as traders braced for Wednesday's Fed decision, where futures now price roughly an 88-91% chance of a 25-basis-point hike after last week's hotter-than-expected August CPI. Attention now turns to Tuesday's retail sales and industrial production data and Trip.com's earnings after the close for fresh reads on consumer demand and travel spending heading into the FOMC meeting.