OpenAI concerns drag tech stocks lower ahead of big market earnings

The sector’s first-quarter earnings were expected to grow about 41% according to Bloomberg Intelligence, suggesting resilience despite geopolitical tensions.

JPMorgan Chase & Co.’s Jamie Dimon cautioned that a credit-market downturn could be worse than expected, even after a strong quarter in which loan portfolios held up well.

Traders parsed data on the eve of a Federal Reserve decision, with consumer confidence unexpectedly rising while Treasuries declined as higher energy prices fed inflation concerns.

Brent crude traded around $111 per barrel amid concerns a protracted Iran peace process could keep the Strait of Hormuz closed; CNN reported that mediators in Pakistan expect Iran to submit a revised proposal in the coming days, as President Trump suggested Iran has asked the US to lift a naval blockade.

Dennis Follmer of Montis Financial emphasized that the key question for investors is whether the AI investment trend can sustain the market’s advance.

As megacap earnings season approaches, Alphabet, Microsoft, Amazon and Meta Platforms are scheduled to report on Wednesday, followed by Apple on the next day, according to the report.

The S&P 500 fell from a record as technology shares declined, while the Nasdaq 100 dropped about 1.5%, with partners such as Oracle Corp. and CoreWeave among the names hit.

OpenAI stated that its consumer and enterprise businesses are firing on all cylinders, pushing back against the concerns raised about sales and user acquisition.

The Wall Street Journal reported that OpenAI failed to meet several sales targets after rival Anthropic PBC gained ground in coding and enterprise markets, fueling internal concerns about the ability to support AI infrastructure spending.