Reserve Bank of Australia deputy governor Andrew Hauser said inflation is the economy’s “one big problem,” with markets fully pricing a September cash-rate increase to 4.6%, a 15-year high. Traders are also factoring in what is seen as a near certainty of two more hikes by February. Analysts say current inflation pressures are being driven largely by supply disruptions linked to the U.S.-Iran conflict and a surge in AI spending by major U.S. technology companies. They argue rate rises are poorly suited to addressing those supply-side forces.

Bank of America CEO Brian Moynihan said at a meeting on Monday that the bank’s third-quarter sales and trading revenue will be flat. The remark sparked a selloff in bank stocks.

NextEra Energy and Dominion Energy said they are expanding the Virginia benefits package tied to their proposed merger by extending residential bill credits from $10 per month for two years to $10 per month for four years. The companies also pledged an additional $100 million to expand the EnergyShare assistance program through 2038 and committed $100 million to a workforce development fund. They further announced a five-year Virginia Supplier Program of up to $1 billion per year for local contractors, suppliers and service providers.

Chipmakers sank after leading AI executives urged a slowdown in advanced system development, pushing a key industry gauge down 5% and sending the Nasdaq 100 1.3% lower. Brent crude rose above $108, adding to inflation concerns. Markets are also focused on the Federal Reserve’s interest-rate decision due this week.

OpenAI CEO Sam Altman said the company will not go public in 2026. Fortune reported that OpenAI had previously discussed pulling a potential IPO forward and floated a possible listing valuation of about $1 trillion. OpenAI said it raised $122 billion in committed capital in March at a postmoney valuation of $852 billion, highlighting computing power as a strategic advantage.

The U.S. 10-year Treasury yield climbed above 5% on Monday for the first time since 2023 as the Iran war kept lifting oil prices, with Brent crude jumping as much as 4% to nearly $110 a barrel. With inflation running above the Federal Reserve’s target for more than five years, policymakers are seen as less willing to wait for price pressures to fade. The 5% yield threshold also weighed on tech shares, with chipmakers leading losses, and higher yields are making equity financing more difficult for companies.

Costco has raised the price of its Kirkland Signature full-synthetic motor oil and set weekly purchase limits as crude oil costs climb again. The Kirkland 5-quart two-pack now costs about $58, up from roughly $30 last year, and shoppers can buy only two boxes per week. The retailer is also limiting purchases of Mobil 1 full-synthetic motor oil 1-quart six-packs, priced around $44, to five per membership. Brent crude topped $109 a barrel on Monday morning, and U.S. gasoline and diesel prices have moved higher, according to AAA.

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.