Brazil’s central bank cut the Selic rate by 25 basis points for a fifth straight meeting, taking it to 13.75% in line with most economists’ expectations. The move comes ahead of Brazil’s presidential election and on the same day the U.S. Federal Reserve raised its benchmark rate, heightening attention on a potentially narrowing interest-rate gap. Policymakers said further adjustments will depend on new information to bring inflation back to target. Election uncertainty and higher oil prices are adding to the risks around the economic outlook.

The Federal Reserve raised interest rates for the first time in three years to rein in high inflation, which has been worsened by military tensions between the U.S. and Israel and Iran. U.S. stock indexes fell at the open before clawing back some losses, while tech shares held up better than the broader market. Saudi Arabia offered additional crude supplies, easing fears of Middle East disruptions and pushing oil prices lower, which weighed on energy stocks.

European equities fell to a three-month low on Tuesday as surging oil prices and higher bond yields weighed on risk appetite ahead of the Federal Reserve’s rate decision this week. The pan-European STOXX 600 slipped 0.8% to 630.99, with financial services and banks leading declines and UBS down 4.2%. Sentiment also weakened after Bank of America CEO Brian Moynihan said investment banking fees are projected to drop by at least 10% in the third quarter. Markets are watching the Fed’s policy decision later this week.

U.S. stocks fell on Monday, led by losses in Nvidia and other chipmakers after executives at major AI companies voiced safety concerns around artificial intelligence development. The benchmark 10-year Treasury yield briefly moved above 5%, adding to investor unease ahead of a Federal Reserve meeting. Persistently high inflation and rising borrowing costs also weighed on sentiment.

U.S. stocks fell on Monday as chipmakers including Nvidia slid after executives at major AI companies called for a slowdown in AI development over safety concerns. The 10-year Treasury yield climbed above 5% for the first time since 2023, adding to jitters ahead of a Federal Reserve policy meeting. Worries about U.S. fiscal health and Middle East energy supply also weighed on sentiment.

Major U.S. stock indexes fell on Monday, led lower by AI-related shares. Industry leaders voiced concerns about AI safety risks and urged a slowdown in development, prompting investors to reassess the sector. Nvidia dropped 3% and Amazon fell more than 1%, while chipmakers such as Intel and AMD also slid. Defensive areas including consumer staples and healthcare proved more resilient.

AI-related stocks saw sharp declines, with Nvidia shares down 3% and tech stocks weakening across global markets. Anthropic CEO Dario Amodei urged slowing AI development to curb potential misuse, while OpenAI CEO Sam Altman put off an IPO this year, citing safety concerns. The warnings added to investor doubts about the AI sector’s outlook.

Nasdaq 100 futures fell in early trading on Monday, pressured by a selloff in AI-related stocks. Safety-focused calls from industry figures including Elon Musk and Sam Altman to pause AI model development weighed on sentiment. Nvidia slid more than 2% and Amazon fell 1%, while other chipmakers such as Intel, AMD and Marvell Technology also weakened. Analysts said the tech-sector pullback could influence the tone heading into the Federal Reserve’s upcoming rate decision.

Concerns over global energy supplies intensified after a Saudi pipeline closure, pushing Brent crude futures up 2.6% to USD 107.36 per barrel and WTI up 2.4% to USD 102.48. Asian equities broadly came under pressure, with Japan’s Nikkei 225 down 0.59% and South Korea’s Kospi opening 3.45% lower, while Hong Kong’s Hang Seng Index and China’s CSI 300 also slipped. Gold edged down to USD 4,336 an ounce as rising bond yields weighed on the non-interest-bearing asset.