U.S. stocks ended mixed on Thursday as fresh concerns surrounding OpenAI’s revenue performance rattled investors and put pressure on the artificial intelligence sector.
The Nasdaq Composite fell 1.25% to close at 27,193.34, while the S&P 500 slipped 0.47% to 7,765.36. In contrast, the Dow Jones Industrial Average edged up 51.77 points, or 0.1%, finishing at 51,231.64.
Technology stocks faced selling pressure after reports indicated that OpenAI’s annualized revenue had fallen short of previously communicated expectations. Oracle shares dropped more than 5%, while Nvidia declined nearly 3% and Advanced Micro Devices (AMD) fell close to 4%, reflecting growing investor concerns about the outlook for AI-related investments.
Geopolitical tensions in the Middle East added to market uncertainty, pushing oil prices higher. President Donald Trump’s comments regarding negotiations with Iran, alongside reports of potential U.S. military escalation, initially drove crude prices upward. Oil subsequently retreated from its session highs after Trump indicated that the U.S. would not attack Iran before next month’s midterm elections.
Brent crude rose 4.07% to $104.28 per barrel, while West Texas Intermediate (WTI) gained 3.64% to settle at $91.49.
Investors also monitored Treasury yields following their recent climb to levels not seen in approximately 24 years. The benchmark 10-year Treasury yield declined 5 basis points to 5.227%, while the 30-year yield fell 6 basis points to 5.601%, following a solid U.S. Treasury auction of 30-year bonds.
Rising oil prices and elevated bond yields have contributed to increased volatility in equity markets. Investors are concerned that sustained energy-price increases could keep inflation elevated, potentially prompting the Federal Reserve to consider further interest-rate hikes.
Palantir Technologies was a notable exception to the broader technology-sector weakness, gaining 2% after Goldman Sachs upgraded the stock. The investment bank highlighted further growth potential from sovereign AI solutions and customized applications, suggesting that these emerging markets could create additional opportunities for the company.
