US stocks sink amid AI slowdown warnings

Broader market sentiment was further weighed down by sharp spikes across fixed-income and energy markets. The 30-year Treasury yield climbed to 5.38 percent, reflecting elevated inflation concerns ahead of the Federal Reserve's upcoming policy meeting.

In global commodity markets, crude oil prices extended their upward trajectory after Saudi Arabia shut down a strategic pipeline amid widening geopolitical conflict in the Middle East. Brent crude for November delivery went up 1.07 dollars, or 1.02 percent, to settle at 105.68 dollars a barrel on the London ICE Futures Exchange.

The confluence of surging energy costs, bond market turbulence, and last Friday's elevated US consumer price index report solidified expectations for near-term monetary tightening.

According to financial market pricing, traders are assigning an 88 percent probability that the Federal Reserve will raise benchmark interest rates on Wednesday, even as Fed Chair Kevin Warsh reiterates his stance against providing explicit forward policy guidance.