U.S. stocks fell after Anthropic Chief Executive Dario Amodei called for a slowdown in artificial-intelligence development and as another increase in oil futures triggered interest-rate worries.

The Dow Jones Industrial Average retreated 152.09 points, or 0.29%, to 52421.20. The S&P 500 lost 37 points, or 0.48%, to 7619.98 and the tech-heavy Nasdaq Composite fell 146.62 points, or 0.56%, to 26186.41.

Oil futures rose $1.34 per barrel, or 1.3% to $101.39 a barrel in New York as Middle East supplies were further jeopardized. It was the ninth gain for oil futures in 10 sessions and the benchmark contract has risen by 18% for September. Saudi Arabia shut down an East-West pipeline that was a key alternative to the Strait of Hormuz. Iran-backed Houthi militants tightened their grip on another critical energy-shipping chokepoint, the Bab al-Mandeb strait.

The rise in oil futures and refined fuels increased inflation and rate expectations.

"Diesel in particular - that's what we use to get everything everywhere so it's concerning when you see these spikes in prices and it's hard to see how it's going to be going down any time soon," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.

The yield on the policy-sensitive two-year Treasury declined 0.010 percentage point to 4.632%. The yield on the 10-year Treasury fell 0.014 percentage point to 4.960%. During the session, the 10-year yield topped 5% level for the first time since 2023. At its peak, the 10-year yield was the highest since July 19, 2007. The yield on the 30-year bond fell 0.027 percentage point to 5.327%, but still finished with its third highest close of the year.

Federal Reserve Chairman Kevin Warsh is now widely anticipated to raise rates to a range between 3.75% and 4% when the central-bank meeting concludes Wednesday.