At noon, Eastern time, the S&P 500 (^GSPC 0.72%) had fallen 0.68% to 7,124.89 as tech weakness pulled it from record territory, the Nasdaq Composite (^IXIC 1.27%) dropped 1.28% to 7,124.89 on an AI‑chip sell‑off, while the Dow Jones Industrial Average (^DJI +0.00%) inched up 0.20% to 49,264.90 on defensive strength.
Market movers
AI‑linked names slipped in morning trading, with concerns about OpenAI driving losses for Advanced Micro Devices, Oracle, CoreWeave, and Nvidia. In contrast, Coca‑Cola soared on positive earnings and more defensive Dow components saw relatively firmer trading tied to risk rotation.
What this means for investors
The Nasdaq fell from recent highs this morning as concerns about OpenAI’s revenue re-ignited fears of overspending on artificial intelligence (AI) infrastructure. Last night, the Wall Street Journal reported that OpenAI had missed key internal targets on users and revenue. Today, OpenAI denied the claims. This afternoon’s trading will show whether it is enough to ease tech jitters.
With a slew of big tech companies due to report quarterly earnings this week and the Federal Reserve beginning its two-day meeting, investors are acutely aware of any potential weakness in AI demand that could undermine high valuations. Oil prices also increased as U.S.-Iran tensions show no signs of abating. WTI crude briefly peaked above $100 a barrel, adding to a risk-off mood on Wall Street.
Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Oracle. The Motley Fool has a disclosure policy.
