OpenAI concerns drag tech stocks lower ahead of big market earnings
Concerns over OpenAI missing its targets for new users and sales dragged down tech stocks ahead of big market earnings from Alphabet, Microsoft, Amazon, and Meta. The Nasdaq 100 lost about 1.5% as traders gear up for a slew of megacap results.
Tech stocks fell as concerns resurfaced over whether vast investments in artificial intelligence will pay off. OpenAI reportedly missed sales targets after rival Anthropic gained ground in coding and enterprise markets. Partners Oracle and CoreWeave slumped, and the S&P 500 dropped from a record. Big tech companies, representing about a quarter of the S&P 500's value, are set to release earnings, with results expected to have grown 41% in the first quarter. Any misstep involving AI-related demand could give the market second thoughts. The sector's results have been shielded from the Iran war disruptions so far.
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