Nasdaq leads Wall Street lower as chip stocks tumble, oil rises

• Major chipmakers led declines: ARM Holdings dropped nearly 6%, with Applied Materials, Broadcom, AMD, and Nvidia all falling 2-3% on concerns that OpenAI missed user growth targets and revenue goals for ChatGPT
• WTI crude oil jumped 3.2% to $99.50 per barrel, trading roughly 50% above pre-conflict levels as the Strait of Hormuz remains closed amid US-Iran tensions
• The Federal Reserve is widely expected to hold rates steady, with market expectations for rate cuts pushed back to December due to rising inflation driven by higher energy prices

Market Summary: Wall Street Declines as Chip Stocks Fall, Oil Surges

Market Performance:

Wall Street closed lower on Tuesday, April 28, 2026, with the Nasdaq leading declines, down 0.9% to 24,664. The S&P 500 fell 0.5%, while the Dow Jones remained relatively flat after initially gaining 0.2%. This reversed modest gains from the previous session when both the S&P and Nasdaq reached record closing highs.

Key Drivers:

*Semiconductor Sector Decline:* Major chip stocks tumbled following concerns about OpenAI's growth trajectory. The Wall Street Journal reported OpenAI missed its target of one billion weekly active users by end-2025 and fell short of ChatGPT revenue goals. CFO Sarah Friar reportedly expressed concerns about funding future computing commitments. ARM Holdings plunged nearly 6%, while Applied Materials, Broadcom, AMD, and Nvidia all declined 2-3%.

*Microsoft Partnership Changes:* Microsoft shares dropped 1.45% after announcing modifications to its OpenAI agreement, removing exclusivity and revenue-sharing arrangements.

*Oil Price Surge:* WTI crude jumped 3.2% to $99.50 per barrel—approximately 50% above pre-conflict levels—driven by the ongoing closure of the Strait of Hormuz and US-Iran tensions. President Trump was reportedly reviewing Iran's proposal to reopen the strait.

Federal Reserve Watch:

The Fed began its two-day policy meeting with expectations to hold rates steady. Market forecasts now anticipate rate cuts delayed until December, complicated by rising inflation expectations driven by elevated energy prices.

Upcoming Catalysts:

Post-market earnings from Visa, T-Mobile, and Starbucks, with five of the "Magnificent 7" tech companies reporting this week.