Stocks Fall as Report on OpenAI Fuels Tech Jitters: Markets Wrap
(Bloomberg) — A selloff in technology giants dragged down stocks as concerns resurfaced over whether vast investments in artificial intelligence will pay off just as traders gear up for a slew of megacap results.
The industry that has powered this month’s equity rally got hit on a news report that OpenAI failed to meet its own goals for new user acquisition and sales, fueling worries the firm may struggle to support its AI infrastructure spending. Partners such as Oracle Corp. and CoreWeave Inc. slumped, with the S&P 500 dropping from a record. The Nasdaq 100 lost 1%.
OpenAI missed several sales targets after rival Anthropic PBC gained ground in the coding and enterprise markets, the Wall Street Journal reported. Stocks remained lower even as the ChatGPT creator pushed back against those concerns, saying its consumer and enterprise businesses are “firing on all cylinders.”
That all came as big techs representing about a quarter of the S&P 500’s value get ready to release their earnings. Alphabet Inc., Microsoft Corp., Amazon.com Inc. and Meta Platforms Inc. are set to report Wednesday, followed by Apple Inc. a day later.
Any misstep involving AI-related demand or capital budget expenditures could easily give the market second thoughts about how far it has run in the past month, according to Dennis Follmer at Montis Financial.
“The most important question for investors is whether the AI train can keep driving the market forward,” he said.
The silver lining is that tech earnings have been largely shielded from the disruptions of the Iran war. The sector’s results are expected to have grown 41% in the first quarter, according to data compiled by Bloomberg Intelligence.
Elsewhere, Brent crude topped $111 on concern over a protracted peace process that could keep the Strait of Hormuz shut for an indefinite period.
President Donald Trump said Iran has asked the US to lift a naval blockade of the waterway while the two sides negotiate an end to the two-month war. Mediators in Pakistan expect Tehran to submit a revised proposal in the next few days, CNN reported.
Worries over how the conflict might impact inflation — alongside a seemingly stable labor market — will likely keep Federal Reserve policymakers on the sidelines for a third straight meeting. Short-dated Treasuries fell.
Meantime, JPMorgan Chase & Co.’s Jamie Dimon again cautioned that a credit market downturn could be worse than expected, even after his firm and Wall Street rivals posted a banner quarter in which loan portfolios held up.
Corporate Highlights:
The Federal Communications Commission will start an early review of the TV station licenses owned by Walt Disney Co.’s ABC network over potential “unlawful discrimination,” the regulator said. United Parcel Service Inc. left its financial guidance unchanged despite topping first-quarter sales and profit expectations, underscoring the uncertainty that remains for the courier’s plan to overhaul its delivery network. Coca-Cola Co.’s focus on smaller sizes is paying off with cash-strapped consumers as the world’s largest beverage maker boosted sales last quarter more than expected. Centene Corp.’s profit exceeded expectations and the company raised its outlook for the year in the latest sign of recovery for a US health insurance sector coming off a terrible year. Spotify Technology SA sank after the music streaming leader gave a forecast for operating income in the second quarter that missed estimates. What Bloomberg Strategists say…
“Stocks and bonds face pressures this week beyond rising oil prices. High hurdles on Mag 7 earnings expectations will keep a lid on equities, while bond yields may rise further as some traders bet on the 10-year hitting 4.40%.”
—Edward Harrison, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 fell 0.5% as of 4 p.m. New York time The Nasdaq 100 fell 1% The Dow Jones Industrial Average was little changed The MSCI World Index fell 0.5% Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro was little changed at $1.1710 The British pound fell 0.1% to $1.3517 The Japanese yen fell 0.1% to 159.65 per dollar Cryptocurrencies
Bitcoin fell 0.8% to $76,378.37 Ether rose 0.5% to $2,302.07 Bonds
The yield on 10-year Treasuries was little changed at 4.34% Germany’s 10-year yield advanced three basis points to 3.07% Britain’s 10-year yield advanced three basis points to 5.01% Commodities
West Texas Intermediate crude rose 3.6% to $99.86 a barrel Spot gold fell 1.8% to $4,596.20 an ounce ©2026 Bloomberg L.P.
