Nasdaq falls 1% trade as AI stocks slide on OpenAI news
The Nasdaq Composite fell 1.25% to close at 27,193.34 after new details about OpenAI’s annualized revenue unsettled investors. Oracle, Nvidia and Advanced…
The Nasdaq falls 1% trade ended with a 1.25% loss on Thursday, as new details about OpenAI’s annualized revenue unsettled investors and weighed on technology shares. The Nasdaq Composite closed at 27,193.34, while the S&P 500 fell 0.47% to 7,765.36.
The Dow Jones Industrial Average moved in the opposite direction, adding 51.77 points, or 0.1%, to finish at 51,231.64. The contrasting performance put the focus on pressure across AI-linked stocks rather than a broad market decline.
OpenAI’s annualized revenue was below the amount previously signaled, according to CNBC’s report. Oracle shares dropped more than 5%; Nvidia lost nearly 3%, and Advanced Micro Devices fell almost 4%.
The shift was sharp. Investors had to weigh a revenue setback for a prominent AI company against other strains on markets, including higher oil prices and elevated Treasury yields.
Nasdaq falls 1% trade as AI shares retreat
Gil Luria, head of technology research at D.A. Davidson, said he remained optimistic about the sector despite the reaction to the revenue report. “I am not concerned about OpenAI just tripling its revenue this year,” he told CNBC.
Luria said OpenAI’s growth accelerated during the quarter and that the company was catching up to Anthropic in enterprise business. The available report provides no further detail on the comparison, so the market response remained centered on the disclosed revenue shortfall and the declines in major technology shares.
Palantir Technologies bucked the slide, gaining 2% after Goldman Sachs upgraded the stock. The firm cited potential in the total addressable market as sovereign AI and bespoke applications develop, CNBC reported.
Oil and yields add pressure
Oil prices also climbed after President Donald Trump said he did not want a deal with Iran to end the war. The report said the United States was reportedly preparing for “massive bombing” in the Middle East. Trump later said the United States would not attack Iran before the midterm elections early next month, and oil prices retreated from their highs.
Brent crude rose 4.07% to $104.28 per barrel. West Texas Intermediate futures gained 3.64% to settle at $91.49.
Treasury yields remained part of the market’s calculation after the 10-year and 30-year yields reached fresh 24-year highs that week. The 10-year yield was last down 5 basis points at 5.227%, while the 30-year yield fell 6 basis points to 5.601%, following a solid 30-year Treasury auction.
Ross Mayfield, an investment strategist at Baird, linked the pressure on longer-term yields to inflation concerns, particularly energy costs. He said a structurally sound deal with Iran that eased regional tensions and lowered oil prices could bring yields down meaningfully.
Mayfield said equities had been “pretty resilient” despite the pressure, and noted that the S&P 500 and Nasdaq had reached fresh all-time highs that week. Still, he warned that even a modest rise in longer-term yields could create “more significant headwinds” for stocks. He said yields could stabilize in the 5% to 6% range.
Investors now face a market pulled by company-specific AI concerns, energy prices and borrowing costs. The Nasdaq’s Thursday close reflects that mix; the cited report gives no further scheduled market event or next step.
Source: cnbc.com
