Dow rises 110 points as Nasdaq slides on AI fears, oil surge weighs

• A Wall Street Journal report that OpenAI missed user and revenue targets triggered sharp selloffs in AI-linked stocks, with Nvidia down 2.9%, AMD down 4%, and Arm Holdings falling 7%
• Oil prices surged roughly 54% above pre-war levels, with Brent crude climbing above $111 per barrel and WTI above $100, driven by ongoing US-Iran tensions and Strait of Hormuz disruptions
• Five 'Magnificent Seven' tech companies including Alphabet, Amazon, Meta, Microsoft, and Apple are set to report earnings this week, with investors focused on whether results can justify elevated valuations amid macroeconomic uncertainties

Market Summary

Market Performance

U.S. equities opened mixed on Tuesday, April 28, 2026, with the Dow Jones rising 110 points (+0.23%) while the Nasdaq Composite fell over 1.15% and the S&P 500 dropped approximately 0.54%. The divergence reflects a sharp rotation out of technology into non-tech defensives.

Key Driver: AI Concerns

A Wall Street Journal report revealed that OpenAI has missed user growth and revenue targets, with CFO Sarah Friar expressing concerns about meeting computing contract obligations without accelerated revenue growth. This news triggered significant losses in AI-linked stocks and semiconductors:

• Nvidia: -2.9%
• Advanced Micro Devices: -4%
• Arm Holdings: -7%
• Broadcom and Intel also declined

Energy and Geopolitical Tensions

Oil prices surged sharply, with Brent crude climbing above $111/barrel and West Texas Intermediate exceeding $100/barrel—approximately 54% higher than pre-war levels. Disruptions to the Strait of Hormuz and stalled U.S.-Iran negotiations have intensified concerns. President Trump reportedly rejected Iran's latest proposal and canceled plans to send envoys to Pakistan for ceasefire talks.

Individual Movers

• Coca-Cola jumped 3% after beating earnings estimates and raising its annual profit outlook
• Spotify declined on weaker-than-expected Q2 profit guidance
• Corning fell after missing Q2 revenue forecasts

Outlook

Investors face a critical earnings week with five "Magnificent Seven" companies reporting (Alphabet, Amazon, Meta, Microsoft, Apple). Elevated valuations and high expectations are being tested against macroeconomic uncertainties and geopolitical risks.