Wall Street Corrects, OpenAI and High Oil Issues Pressure Tech Stocks
US stocks weakened on Tuesday (April 28th) after their record-setting rally the previous day began to lose steam, driven by pressure in technology stocks following a report on OpenAI's performance and rising oil prices. The S&P 500 fell 0.5%, while the Nasdaq slipped 0.9%. The Dow fell 31 points (-0.06%), with the decline offset by a more than 3% rise in Coca-Cola shares after earnings beat expectations.
The biggest pressure came from the AI and semiconductor ecosystems. The Wall Street Journal reported that OpenAI's revenue and new user growth were below internal targets, along with internal concerns that its ability to pay for computing contracts could be disrupted if revenue growth is not fast enough. The report triggered a selloff in chip stocks: the VanEck Semiconductor ETF fell more than 2%, Nvidia fell more than 1%, Broadcom fell more than 4%, AMD fell 3%, Intel fell 1%, and Oracle fell more than 3%.
Sentiment is also clouded by geopolitical uncertainty, following signs that US-Iran peace talks have stalled again, while oil prices have risen. President Donald Trump canceled plans to send US envoys Steve Witkoff and Jared Kushner to Pakistan, saying negotiations could be conducted by phone, while an Iranian Foreign Ministry spokesman said no meeting had been scheduled. Meanwhile, the White House confirmed that Trump and his national security team discussed Iran's offer to open the Strait of Hormuz if the war ends and the US lifts its blockade.
The market now awaits a series of major corporate earnings reports, with five tech giants scheduled to report this week: Alphabet, Amazon, MetaTrader, and Microsoft on Wednesday, followed by Apple on Thursday—amid the tech sector's sensitivity to AI spending narratives, oil movements, and diplomatic developments. (Arl)
Source: Newsmaker.id
