Summary
- Major New York stock indexes closed lower across the board as concerns grew over OpenAI’s growth.
- OpenAI missed targets for new users and revenue, fueling concern over heavy AI investment costs and the burden of future AI data center costs.
- International oil prices rose despite news of the UAE’s exit from OPEC, while AI-related stocks including Nvidia, Broadcom and AMD all declined.
Forecast Trend Report by Period
Brent Rises 2.8%, WTI Gains 3.7%
Despite News of the UAE’s Exit From OPEC
Major US stock indexes closed lower across the board on April 28 as concerns over growth at OpenAI, the developer of ChatGPT, weighed on sentiment.
The Dow Jones Industrial Average fell 25.86 points, or 0.05%, to 49,141.93 at the close on the New York Stock Exchange.
The S&P 500 dropped 35.11 points, or 0.49%, to 7,138.80, while the tech-heavy Nasdaq Composite slid 223.30 points, or 0.90%, to 24,663.80.
The Wall Street Journal reported that OpenAI missed targets for new users and revenue, prompting internal concern over whether it can sustain heavy spending on artificial intelligence.
The report said Sarah Friar, OpenAI’s chief financial officer, recently told executives that if revenue does not rise quickly enough, the company may be unable to cover future AI data center costs.
International oil prices ended higher despite news that the United Arab Emirates would leave the Organization of the Petroleum Exporting Countries. Prices gained as talks between the US and Iran over ending the war stalled, heightening concerns over crude supply.
Brent crude futures for June settlement rose 2.8% from the previous session to close at $111.26 a barrel. US West Texas Intermediate crude futures for June delivery climbed 3.7% to settle at $99.93 a barrel.
Nvidia, a leading AI chipmaker, fell 1.59% on concerns about OpenAI’s growth outlook. Other AI-related shares also extended losses, with Broadcom down 4.39%, Oracle falling 4.05%, Micron Technology losing 3.86% and AMD declining 3.41%.
This week, companies in the so-called Magnificent Seven are due to report earnings in succession. Alphabet, Microsoft, Amazon and Meta will report on April 29, while Apple is scheduled to release results on April 30.
Lee Su, Hankyung.com reporter 2su@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.
