U.S. stocks closed lower on Monday as investors weighed a slower pace of artificial intelligence development, with Middle East tensions lifting oil prices and the 10-year Treasury yield briefly moving above 5%.

The Dow Jones Industrial Average fell 152.09 points, or 0.29%, to 52,421.2. The S&P 500 dropped 37 points, or 0.48%, to 7,619.98, and the Nasdaq Composite lost 146.62 points, or 0.56%, to 26,186.41.

Chip stocks were broadly weaker, with Nvidia down 3.4%, AMD down 4.4%, Broadcom down 4.8% and Micron Technology down 5.3%. The Philadelphia Semiconductor Index fell 5.9%.

Among large-cap tech names, Meta rose 2.7%, Alphabet gained 3.2%, Microsoft added nearly 2% and Apple edged up 0.2%, while Tesla fell 1.8% and Amazon lost 1.3%.

In energy markets, Brent crude briefly climbed toward $110 a barrel after a Saudi Arabia pipeline was attacked and shut before pulling back to $106.09, up 1.4%. West Texas Intermediate rose 1.6% to $101.74.

The 10-year Treasury yield touched about 5.011%, its first move above that level since 2023, before easing to around 4.96%. The shift reflected rising concerns about inflation, deficits and the Federal Reserve's rate outlook. Markets awaited this week's FOMC meeting, with economists broadly projecting a 25-basis-point increase to a 3.75% to 4% range and futures implying roughly a 90% probability.

Gold prices were pressured as rate expectations rose. Spot gold fell 0.9% to $4,305 an ounce, while New York gold futures declined about 1.3% to $4,350. The dollar strengthened, with the dollar index at 99.73, its highest since September 2, before drifting to around 99.5. The yen weakened, and the euro traded around $1.152 before ending the day at $1.155, down 0.3%.