U.S. stocks were modestly lower Monday as concerns over Middle East peace talks and oil supply tensions outweighed strong gains in AI-related shares. The Dow Jones Industrial Average fell 272.63 points, or 0.51%, to 53459.78, while the S&P 500 lost 40.70 points, or 0.52%, to 7745.06. The Nasdaq Composite declined 84.25 points, or 0.32%, to 26644.91.

Chip and memory stocks led the upside, with Sandisk jumping 8.9%, Marvell up 5.5%, and Micron rising 4.1%. The gains followed a report that Anthropic’s Q2 revenue rose 14-fold, signaling sustained AI demand. SpaceX shares rose 4.4% after filings revealed major investments from Nvidia and Alphabet, with Harvard’s endowment also disclosing a $2.2 billion stake.

Despite AI-driven strength, broader economic concerns kept indexes down. China’s July retail sales grew just 0.6%, missing expectations, while oil prices climbed on Strait of Hormuz tensions. Brent crude rose 2.7% to $90.87 a barrel.

Japanese government bond yields hit levels not seen since 1996, with the 10-year yield reaching 2.930%, as markets brace for a potential Bank of Japan rate hike in September.