[New York Stock Exchange] All Major Indices Close Lower on OpenAI Growth Concerns

Most Tech Stocks Close Lower
International Oil Prices Rise Despite UAE’s Withdrawal from OPEC

Following the release of a report expressing concerns over OpenAI's growth, all three major indices on the New York Stock Exchange closed lower on the 28th (local time).

On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished at 49,141.93, down 25.86 points (0.05%) from the previous trading day. The S&P 500, which focuses on large-cap stocks, fell by 35.11 points (0.49%) to close at 7,138.80. The tech-heavy Nasdaq Composite Index declined by 223.301 points (0.90%), ending the session at 24,663.799.

New York Stock Exchange. New York, USA – Special Correspondent Yoonjoo Hwang

Investor sentiment weakened due to the OpenAI-related report. The Wall Street Journal (WSJ) reported that OpenAI's recent revenue and new user growth rates fell short of its own targets. In particular, the WSJ reported that Chief Financial Officer Sarah Friar warned the management team that if revenue growth does not accelerate sufficiently, the company may have difficulty paying for future computing contracts. This led to a broad decline in related stocks.

This week, five out of the seven major big tech companies are scheduled to announce their earnings. Alphabet, Meta, Microsoft (MS), and Apple will release their quarterly results sequentially from tomorrow through Thursday. Ahead of these announcements, the negative report on OpenAI's revenue is seen as a factor that dragged the indices down.

Steven Kolano of Integrated Partners analyzed, "Ahead of earnings releases for most of the Magnificent 7 (M7) companies, investors are engaging in cautious profit-taking."

Most of the major stocks by market capitalization declined. Notable declines included Nvidia (-1.61%), Amazon (-0.56%), Alphabet (-0.21%), Meta (-1.25%), Tesla (-0.76%), Broadcom (-4.24%), and TSMC (-2.66%). In contrast, Apple rose by 0.84% and Microsoft increased by 0.75%.

International oil prices finished higher. This appears to reflect expectations that the blockade of the Strait of Hormuz will continue for the time being, as peace talks between the United States and Iran remain deadlocked. Despite the United Arab Emirates (UAE) signaling a potential OPEC exit and indicating possible production increases, these moves failed to prevent oil prices from rising.

It has been reported that Iran proposed a three-step agreement: reopening the Strait of Hormuz in exchange for the United States lifting its blockade on Iranian ports and postponing nuclear negotiations. However, the prevailing view is that the White House is unlikely to accept this proposal.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for June delivery finished at $99.93 per barrel, up 3.7% from the previous session. On the ICE Futures Exchange, Brent crude for June delivery rose 2.8% to $111.26 per barrel.

Oil and energy stocks also recorded broad gains. ExxonMobil rose by 1.71%, Chevron by 1.86%, Occidental Petroleum by 1.57%, and APA by 0.60%, all closing higher.

This content was produced with the assistance of AI translation services.