From CNBC · Sean Conlon,Hugh Leask,Lee Ying Shan,Sarah Min · · 2m
Nasdaq Falls 1% as AI Trade Stumbles
OpenAI revenue setback triggers AI stock selloff, pushing Nasdaq down 1.25%.
In brief
OpenAI revenue setback triggers AI stock selloff, pushing Nasdaq down 1.25%. OpenAI's annualized revenue fell short of expectations, causing AI stocks to drop 1.25% as Nasdaq closed at 27,193.34. Originally reported by CNBC.
Nasdaq Slides
The Nasdaq Composite slid 1.25% to close at 27,193.34, while the S&P 500 declined 0.47% to 7,765.36.
OpenAI Revenue Shortfall
OpenAI's annualized revenue fell short of previous signals, pressuring ai-related stocks.
Tech Stocks Drop
Oracle shares fell over 5%, while Nvidia and Advanced Micro Devices lost nearly 3% and 4%.
Oil Prices Spike
Brent crude rose 4.07% to $104.28 per barrel after Trump's comments on Iran.
Treasury Yields Rise
The 10-year Treasury yield dropped 5 basis points to 5.227%, while the 30-year yield fell 6 basis points to 5.601%.
Fed Rate Outlook
St. Louis Fed President Musalem expects more rate hikes to curb energy-driven inflation.
AI Trade Concerns
Gil Luria, D.A. Davidson's tech research head, remains optimistic on OpenAI despite revenue report.
Oil Prices Rebound
Oil prices dropped after Trump stated the U.S. won't attack Iran before midterms.
Palantir Shares Rise
Palantir gained 2% after Goldman Sachs upgraded it to a buy rating.
Treasury Auction Impact
The 30-year Treasury auction set yield at 5.618%, up 31 basis points from previous auction.
Fed Governor Waller
Waller expects additional rate hikes but remains uncertain about timing.
Bitcoin Miners Tumble
Bitcoin mining stocks dropped 10% as OpenAI revenue concerns intensified.
European Markets Drop
European stock markets fell 1.07% as oil prices rose and Middle East tensions grew.
HSBC Job Cuts
HSBC plans large-scale job cuts in UK wealth business amid AI integration efforts.
Oil Prices Stabilize
Oil prices dropped after Trump clarified U.S. won't attack Iran before midterms.
Market Reaction
The Nasdaq closed at 27,193.34, marking a 1.25% drop from previous session.
The headline
OpenAI's annualized revenue fell short of expectations, causing AI stocks to drop 1.25% as Nasdaq closed at 27,193.34.
