Dow slips as OpenAI worries, oil surge drag S&P 500, Nasdaq

• OpenAI reportedly missed internal revenue and user targets, with its CFO warning about potential struggles to meet future computing contract obligations, triggering a 3% drop in the VanEck Semiconductor ETF and declines in Nvidia, Broadcom, and AMD
• Oil prices surged over 3% with WTI crude reaching $99.93 per barrel and Brent at $111.26 amid ongoing US-Iran tensions over the Strait of Hormuz, which carries one-fifth of global oil and liquefied natural gas
• Major tech earnings loom large with Alphabet, Amazon, Meta, and Microsoft reporting Wednesday and Apple on Thursday, representing roughly 44% of the S&P 500's total market capitalization

Market Summary

Market Performance:

US stocks retreated from record highs on Tuesday, with the S&P 500 falling 0.49% to 7,138.80, the Nasdaq dropping 0.9% to 24,663.80, and the Dow slipping 0.05% to 49,141.93. Both the S&P 500 and Nasdaq had hit record highs the previous day.

Key Drivers:

*OpenAI Concerns:* A report revealed OpenAI is missing internal revenue and user targets, with CFO Sarah Friar warning about potential difficulties meeting future computing contract obligations if growth doesn't accelerate. This sparked doubts about AI sustainability and heavily pressured technology stocks.

*Semiconductor Selloff:* The VanEck Semiconductor ETF plunged nearly 3%. Nvidia fell over 1%, Broadcom declined more than 4%, and AMD lost approximately 3%. Oracle also dropped amid concerns over its reliance on OpenAI for cloud growth.

*Oil Surge:* Geopolitical tensions involving the US and Iran drove crude prices sharply higher. WTI rose over 3% to $99.93 per barrel, while Brent gained 2.8% to $111.26. President Trump reportedly rejected Iran's proposal to reopen the Strait of Hormuz, a critical route handling one-fifth of global oil and LNG—approximately 20 million barrels daily.

Upcoming Catalysts:

Investor focus shifts to major tech earnings this week: Alphabet, Amazon, Meta, and Microsoft report Wednesday, followed by Apple Thursday. These companies represent roughly 44% of the S&P 500's total market capitalization, making their results critical for market direction.

The Federal Reserve is expected to hold rates steady, though commentary on how elevated energy prices affect inflation will be closely monitored.

Individual Stocks:

Centene rose on earnings beats and raised outlook. General Motors gained after exceeding profit estimates. UPS declined despite reiterating full-year guidance amid rising fuel costs.