FX.co ★ S&P 500 and Nasdaq Close Lower

The S&P 500 fell 0.4% and the Nasdaq lost 1% on Tuesday, pressured by a report highlighting weakness at OpenAI and a rise in oil prices. The Wall Street Journal reported that OpenAI’s revenue and new user growth are running below its internal targets, raising concerns about its ability to fund future computing costs. Chipmakers declined on the news: Nvidia slipped 1.5%, Broadcom more than 4%, AMD 3%, Intel 1%, and Oracle over 3%. Major tech hyperscalers Meta, Microsoft, and Alphabet also traded lower ahead of their earnings reports, due after tomorrow’s closing bell. The Dow, however, finished near unchanged, as AI-related losses were largely offset by a 3.5% gain in Coca-Cola following strong earnings. After the close, Starbucks reported its second consecutive quarter of traffic growth, raised its full-year outlook, and posted revenue that beat estimates.