Nasdaq leads Wall Street lower as chip stocks tumble, oil rises Wall Street experienced a decline on Tuesday, with the Dow, S&P 500, and Nasdaq all closing lower as weakness in chip stocks weighed on investor sentiment. The Nasdaq fell 0.9% to 24,664, driven by pressure on technology shares following reports linked to OpenAI that dampened confidence in the semiconductor sector. The S&P 500 dropped 0.5% to 7,139, while the Dow Jones Industrial Average edged 0.1% lower to 49,142. The market’s focus now shifts to corporate earnings releases after Tuesday’s closing bell, with results from Visa, T-Mobile, and Starbucks expected to test investor sentiment. Chip stocks faced significant pressure as concerns over OpenAI’s growth prospects spread. Reports indicated that the company missed its goal to reach one billion weekly active users by the end of 2025 and fell short of revenue targets for ChatGPT. This news triggered a sell-off in semiconductor stocks, with Nvidia dropping 3.3%, Broadcom falling 4.2%, AMD declining 5.5%, and Arm Holdings plunging 7.4%. Oracle, which partners with OpenAI, also saw its shares fall 7.4% in premarket trading, reflecting worries about demand for data center capacity. Microsoft, a major investor in OpenAI, slipped 1.45% after confirming changes to its agreement, removing exclusivity and revenue-sharing terms. Oil prices rose sharply, bolstering energy sector stocks. The UAE’s decision to leave OPEC sent ripples through the commodity market, with analysts noting the move as a significant shift in global oil supply dynamics. Kathleen Brooks of XTB described the news as a “major blow to OPEC,” emphasizing that the UAE’s departure signals changing dynamics in the oil market and reduced Saudi Arabia’s control over supply.#semiconductor_sector #nasdaq #wall_street #openai #chip_stocks
