S&P 500, Nasdaq Fall After Report Says OpenAI Revenue Missed Expectations [New York Market Briefing]

Chip Stocks Including Nvidia and Micron Weaken

U.S. stocks ended mixed on Oct. 8 as artificial intelligence shares weakened after a report said OpenAI’s revenue fell short of expectations.

On the New York Stock Exchange, the Dow Jones Industrial Average rose 51.77 points, or 0.1%, to close at 51,231.64.

By contrast, the S&P 500 fell 36.41 points, or 0.47%, to 7,765.36, while the tech-heavy Nasdaq Composite dropped 345.35 points, or 1.25%, to 27,193.34.

AI-related technology stocks broadly declined after news emerged that annualized revenue at ChatGPT developer OpenAI was below the level previously disclosed.

The Financial Times reported that OpenAI’s annualized revenue stood at about $50 billion as of the end of September, roughly $20 billion below the $70 billion figure previously presented to investors.

Major semiconductor stocks fell in tandem, with Nvidia down 2.94%, Broadcom off 4.35%, Micron Technology losing 4.79%, AMD falling 3.90% and SK Hynix ADR declining 4.35%.

Higher oil prices also weighed on investor sentiment.

Axios reported that the Pentagon had instructed U.S. Central Command, which oversees the Middle East, several days earlier to prepare to resume large-scale military operations against Iran.

On the New York Mercantile Exchange, November West Texas Intermediate crude rose $3.21, or 3.6%, to $91.49 a barrel, while December Brent crude, the global benchmark, gained $4.08, or 4.1%, to $104.28 a barrel.

Oil prices were up more than 5% during the session but gave back some gains after U.S. President Donald Trump said he would not attack Iran before the November midterm elections.

Long-term U.S. Treasury yields fell. After solid demand was confirmed at an auction of 30-year bonds, the 10-year yield slipped about 0.05 percentage point to 5.227%, while the 30-year yield fell about 0.06 percentage point to 5.601%.

Noh Jung-dong, Hankyung.com reporter, dong2@hankyung.com