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The NASDAQ Composite slid on Thursday as new details about OpenAI spooked investors, putting the artificial intelligence trade under pressure.
The Dow Jones Industrials forged 51.83 points to 51,231.70
The S&P 500 index slid 36.29 points to 7,765.46
The tech-heavy NASDAQ tumbled 345.35 points, or 1.3%, to 27,193.34.
Shares of key tech names came under pressure after OpenAI’s annualized revenue was revealed to be about $20 billion short of the amount previously signaled. Shares of Oracle were down more than 5%, while chipmakers such as Nvidia dipped 2% and Advanced Micro Devices lost 3%.
Adding to the downbeat sentiment, oil prices spiked also after President Donald Trump said he doesn’t want to make a deal with Iran to end the war, while the U.S. is reportedly preparing for “massive bombing” in the Middle East.
However, he later said that the U.S. won’t attack Iran before the midterm elections early next month, moving oil off its highs. Brent crude was last seen up 4% to around $104 per barrel. West Texas Intermediate futures, meanwhile, advanced 4% to around $91.00.
Palantir Technologies was one of the few stocks trading higher on Thursday, with shares gaining 2% after the name received an upgrade at Goldman Sachs.
The firm called for more upside ahead as the total addressable market could be “setting up for another step function change” as a result of the shift to sovereign AI and bespoke applications.
Prices for the 10-year Treasury shot higher, lowering yields to 5.23% from Wednesday’s 5.29%. Treasury prices and yields move in opposite directions.
Oil prices recovered $3.05 to $91.33 U.S. a barrel.
Gold prices added $13.20 to $4,153.90 U.S. an ounce.
