US Stocks Open Mixed as Brent Rises Above $110 and OpenAI Report Hits Tech
Summary
- International oil prices extended their gains, with benchmark Brent crude futures reaching $110.78 a barrel.
- After the Wall Street Journal report, shares of companies partnered with OpenAI fell across the board, with Nvidia, Broadcom, Oracle, AMD, CoreWeave, and Micron Technology all trading lower.
- The market is focused on earnings from the Magnificent Seven — including Alphabet, Amazon, Meta, Microsoft, and Apple — while any disappointment in AI-related demand or capital spending could prompt a reassessment of stock valuations.
Forecast Trend Report by Period
Brent climbs to $110 as US-Iran talks remain deadlocked
OpenAI-linked stocks slide across the board
US stocks opened mixed on April 28 as oil prices remained elevated and a report on OpenAI’s slowing momentum weighed on technology shares.
Oil prices rose again after President Donald Trump and his national security team confirmed they had discussed an Iranian proposal to reopen the Strait of Hormuz if the US lifts its blockade.
Global benchmark Brent crude futures were up 2.5% at $110.78 a barrel as of 10 a.m. Eastern time, while West Texas Intermediate crude gained more than 2.8% to $99.08.
At 10 a.m. Eastern, the S&P 500 was down 0.5% and the tech-heavy Nasdaq Composite had fallen 0.9%. The Dow Jones Industrial Average rose 0.1%, lifted by a gain of more than 5% in Coca-Cola after better-than-expected earnings.
The yield on the 10-year US Treasury note rose 3 basis points to 4.368%.
The Wall Street Journal reported that OpenAI’s recent revenue growth and new-user growth have fallen short of internal targets as rival Anthropic gains share in coding and enterprise AI. The paper added that company executives said OpenAI may not be able to pay for future computing contracts if revenue growth does not accelerate.
The report sparked a selloff in technology shares. Nvidia fell more than 2% and Broadcom dropped 4%. Partner companies including Oracle, AMD and CoreWeave slid 4% to 5%. Micron Technology was down 3.3% at $506. The Philadelphia Semiconductor Index, or SOX, fell 3.3%.
“In a stock market where earnings expectations are rising much faster than share prices, if even one of the four Magnificent Seven companies reporting on Wednesday stumbles on AI-related demand or capital spending, investors may rethink the rally of the past month,” Dennis Fulmer of Montes Financial told Bloomberg.
Alphabet, Amazon, Meta and Microsoft are due to report earnings on April 29, while Apple is set to report on April 30.
“Strong first-quarter corporate earnings have already been priced into the market to some extent,” John Belton, a growth-stock portfolio manager at Gabelli Funds, said.
Kim Jung-a, contributing reporter, Hankyung.com, kja@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
