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Nasdaq 100 Falls as Report of Weaker OpenAI Revenue Drags Tech Stocks

BearishHigh impact
NDX30,725.81 −1.39%

Major U.S. stock indices ended lower on Thursday, led by a decline in technology shares. The tech-heavy NASDAQ-100 Index (NASDAQ:NDX) fell 1.39%, while the S&P 500 index declined 0.5%. The downturn was triggered by reports that artificial intelligence developer OpenAI (NASDAQ:OPENAI) generated annualized revenue that was approximately $20 billion below previous projections, cooling recent enthusiasm for AI-related technology.

The disappointing revenue figure sparked a selloff in chipmakers and other tech companies. Shares of Oracle Corp. (ORCL) fell more than 5%, while Advanced Micro Devices Inc. (AMD) and Nvidia Corp. (NVDA) dropped nearly 4% and 3%, respectively. This slide also dragged down semiconductor exchange-traded funds, which lost between 2.5% and 3.5% during the session.

Investors are now watching how rising borrowing costs might impact future corporate spending on artificial intelligence. In addition, the market is monitoring high-profile corporate developments, including Starbucks Corp.'s (SBUX) rumored interest in acquiring Chipotle Mexican Grill Inc. (CMG) and Coca-Cola Co.'s (KO) potential sale of Costa Coffee.

Key points

  • The NASDAQ-100 Index (NASDAQ:NDX) fell 1.39% on Thursday, leading broader market declines.
  • Reports indicating OpenAI's (NASDAQ:OPENAI) annualized revenue was $20 billion below expectations sparked a selloff in tech stocks.
  • Shares of major chipmakers Nvidia Corp. (NVDA) and Advanced Micro Devices Inc. (AMD) fell nearly 3% and 4%, respectively.
  • Brent crude oil rose 4.1% to $104.28 per barrel amid geopolitical tensions before pulling back slightly.
  • Treasury yields eased from multi-decade highs, with the 10-year yield dropping 5 basis points to 5.23%.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why did the Nasdaq 100 fall on Thursday?

The index fell 1.39% after reports surfaced that OpenAI's annualized revenue was $20 billion lower than previously indicated, which sparked a selloff in chipmakers and broader technology stocks.

How did semiconductor stocks react to the OpenAI revenue report?

Chipmakers experienced a sharp selloff, with Advanced Micro Devices Inc. (AMD) falling nearly 4% and Nvidia Corp. (NVDA) dropping nearly 3%. Semiconductor ETFs also fell between 2.5% and 3.5%.

What happened to oil prices and Treasury yields?

Brent crude rose 4.1% to $104.28 per barrel on Middle East tensions before pulling back. Meanwhile, Treasury yields eased from multi-decade highs, with the 10-year yield dropping to 5.23% following strong auction demand.