FINWIRES · TerminalLIVE
FINWIRES

Equities Mostly Lower Intraday as OpenAI Report Sparks Tech Sell-Off

By

-- US benchmark equity indexes were mostly lower intraday, with technology stocks under pressure following a report that OpenAI missed its sales target, while oil prices rose.

The Nasdaq Composite was down 1.3% at 24,575.3 after midday Tuesday, while the S&P 500 shed 0.7% to 7,127. The Dow Jones Industrial Average rose 0.2% to 49,268.9. Among sectors, technology saw the steepest decline, shedding 1.9%, while energy paced the gainers.

Tech bellwether Nvidia (NVDA) was down 3% intraday, the worst performer on the Dow. Broadcom (AVGO), Advanced Micro Devices (AMD), Oracle (ORCL), and Intel (INTC) also declined. Microsoft (MSFT), however, was up 0.7%.

OpenAI recently missed its own targets for new users and revenue, The Wall Street Journal reported, citing unnamed sources.

"The WSJ in part frames this story as a concern for datacenter spend, with OpenAI having over invested while sales are slowing," Wedbush Securities analyst Matt Bryson said in a note e-mailed to. "We believe infrastructure demand remains robust, driven in large part by (artificial intelligence) usage growth, creating a broad based demand driver for semiconductor and component vendors."

In other company news, Coca-Cola (KO) lifted its full-year earnings growth outlook on Tuesday as the beverages giant posted fiscal first-quarter results above market expectations amid pricing and volume gains. The stock was up 6.3% intraday, the best performer on the Dow and the second-biggest gainer on the S&P 500.

Spotify Technology (SPOT) shares were down 13% after the audio-streaming platform's premium subscriber growth and outlook disappointed investors.

West Texas Intermediate crude was up 3.6% at $99.84 per barrel, while Brent crude climbed 2.8% to $111.34.

US President Donald Trump and national security officials are skeptical of Iran's new offer to open the Strait of Hormuz and delay talks on uranium enrichment, The Journal reported, citing American officials.

Elsewhere in the world, the United Arab Emirates has decided to leave the Organization of the Petroleum Exporting Countries on Friday, in a move that Rystad Energy said makes the cartel "structurally weaker."

The UAE is one of the few OPEC members, including Saudi Arabia, that have spare capacity, Rystad said in a note. OPEC uses a production quota system to stabilize global oil markets.

"Its departure therefore removes one of the core pillars underpinning OPEC's ability to manage the market," Rystad Head of Geopolitical Analysis Jorge Leon wrote.

The Fed's monetary policy committee kicked off its two-day meeting on interest rates, with a decision due Wednesday. Markets widely expect the central bank to keep its benchmark lending rate unchanged for a third consecutive meeting, according to the CME FedWatch tool.

US Treasury yields were higher intraday, with the 10-year rate up 1.8 basis points at 4.36% and the two-year rate rising 4.1 basis points to 3.84%.

Gold was down 2.1% at $4,593.10 per troy ounce, while silver lost 2.8% to $72.95 per ounce.

Related Articles

International

Spanish Current Account Surplus Widens in February

Spain's current account surplus rose to 4.04 billion euros in February from 2.73 billion euros in January, according to Bank of Spain data published Thursday.In the two months to February, the current account surplus totaled 6.77 billion euros, against 6.88 billion euros in the previous year.

$^SXXP
International

Italian Quarterly GDP Up 0.2% in Q1, Flash Data Shows

Italy's quarterly gross domestic product rose 0.2% in the first quarter, after a 0.3% gain in the prior three-month period, preliminary data from statistics agency Istat showed Thursday.The consensus estimate for the quarter pointed to a 0.1% uptick.On a yearly basis, the Italian economy grew 0.7%, against the expected 0.6% rise.

$^SXXP
Asia

Tokyo Electron's Net Income Edges Climbs 5.6% in Fiscal Year 2026

Tokyo Electron's (TYO:8035) net income attributable to owners of the parent rose 5.6% to 574.5 billion yen for the fiscal year 2026 from 544.1 billion yen a year earlier.The semiconductor company's net income per share increased to 1,250.88 yen from 1,179.08 yen a year ago, according to a Tokyo bourse filing on Thursday.Net sales edged up 0.5% to 2.444 trillion yen for the full year ended March 31 from 2.432 trillion yen in the prior year.Tokyo Electron declared a final dividend of 364 yen per share, payable from June 2.For the first half of the fiscal year ending March 31, 2027, the company expects attributable net income of 328 billion yen, net income per share of 721.12 yen, and net sales of 1.570 trillion yen.Tokyo Electron plans to pay an interim dividend of 361 yen per share for the year, higher than the 264 yen per share a year ago.The year-end dividend for the current fiscal year remains undecided.

$TYO:8035