Nasdaq set to tumble as OpenAI report hits Oracle, Nvidia and others

• AI and semiconductor stocks led declines with ARM Holdings down nearly 6%, while Broadcom, AMD, Applied Materials, ASML, and Nvidia all fell 2-3% or more
• OpenAI's revenue concerns threaten the AI investment theme that drove markets to record highs, with potential implications for data center spending by 'Magnificent 7' tech companies reporting earnings this week
• Oil prices surged 3.2% to $99.50 per barrel due to the ongoing closure of the Strait of Hormuz and US-Iran impasse, adding pressure ahead of the Federal Reserve's two-day policy meeting

Market Summary: Nasdaq Tumbles on OpenAI Revenue Concerns

Key Market Movement:

US markets opened mixed on April 28, 2026, with the Nasdaq falling 0.8% and the S&P 500 down 0.5%, retreating from record highs. The Dow Jones remained flat after an initial 0.2% gain.

Main Development:

AI and semiconductor stocks led the decline following a Wall Street Journal report that OpenAI CFO Sarah Friar expressed concerns about the company's ability to pay for future computing contracts if revenue growth doesn't accelerate sufficiently. This news threatens the AI investment theme that has driven markets to record highs.

Affected Companies:

Major semiconductor and tech stocks suffered significant losses:

• ARM Holdings: down nearly 6%
• Applied Materials, Broadcom, AMD, KLA-Tencor, Lam Research, ASML: down over 3%
• Nvidia, Intel, Marvell, Qualcomm, Western Digital: down over 2%
• Microsoft: down 1.5% following announcement of changes to its OpenAI partnership, ending exclusivity and revenue-sharing arrangements
• Oracle also affected

Additional Market Factors:

Oil prices surged 3.2% to $99.50 per barrel (WTI crude), reaching a two-week high due to the ongoing Strait of Hormuz closure and US-Iran impasse.

Upcoming Catalysts:

The Federal Reserve began its two-day policy meeting. Earnings releases expected from Visa, Coca-Cola, T-Mobile US, Booking Holdings, and S&P Global. Five of the "Magnificent 7" tech companies scheduled to report this week.

Market Implications:

Analyst Kathleen Brooks warns OpenAI's struggles could limit data center spending and slow AI adoption, potentially undermining the investment theme supporting recent market records.