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US stock markets traded unevenly on Tuesday as technology shares faced pressure while energy and select consumer stocks moved differently across indexes. The NASDAQ Composite led losses, while the Dow Jones Industrial Average held modest gains. Investors watched AI-related developments, corporate earnings results, and rising oil prices.
US stock indexes closed lower for technology-heavy shares, while industrial names showed stability. The NASDAQ Composite fell 1.37% to 24,547, as investors reduced exposure to large technology firms. The S&P 500 dropped 0.7% to 7,120, while the Dow Jones Industrial Average rose 0.13% to 49,234.
Market data showed selling pressure concentrated in the technology and communication services sectors. These groups represent a large portion of the S&P 500 index, which influences broader market direction. Six out of eleven S&P 500 sectors ended in negative territory during the session.
Art Hogan, chief market strategist at B Riley Wealth, said, “That is putting pressure on the NASDAQ and on the S&P because tech and communication services make up about 40% of the benchmark.” He added, “If OpenAI is seeing some degradation, that will shuffle the deck a bit in terms of what the leadership looks like.”
Technology stocks fell after reports suggested OpenAI had not met internal targets for weekly users and revenue. The Wall Street Journal reported that the company’s growth trends may be slowing compared with earlier expectations. Concerns also emerged around its ability to support large infrastructure spending plans.
Chipmakers experienced sharp declines following the report. NVIDIA's stock dropped 3.2%, AMD fell 4.5%, and Arm Holdings declined 8.6%. Oracle slipped 4.1% due to its exposure to AI-driven cloud demand. Other related companies, such as CoreWeave, also moved lower during the trading session.
A market note from Dennis Follmer of Montis Financial stated, “Any misstep involving AI-related demand or capital budget expenditures from one of the four Magnificent 7 companies reporting Wednesday could easily give this market second thoughts about how far it has run in the past month.”
Energy markets remained active as crude oil prices increased during the session. Brent crude futures rose above $110 per barrel, while West Texas Intermediate moved near $99 per barrel. The increase followed ongoing discussions around tensions involving the United States and Iran.
Reports indicated that discussions included proposals linked to the Strait of Hormuz, a key global shipping route. Market participants continued to monitor developments that could affect global oil supply. Elevated prices added pressure on broader market sentiment during the trading day.
A market commentary noted, “While the US is more strongly positioned to withstand an extended closure of the Strait of Hormuz, the global economy would struggle, and that will eventually ripple back to take a bite out of earnings and stock prices in the US.”
Several major companies released earnings results that contributed to stock movement. UPS shares dropped 5.7% after reporting a decline in quarterly adjusted profit. General Motors fell around 3% even after raising its full-year earnings forecast.
Coca-Cola moved higher, gaining more than 5% after increasing its annual profit outlook. The company’s performance supported gains in the Dow Jones Industrial Average during the session.
Market breadth showed more declining stocks than advancing ones on both the New York Stock Exchange and NASDAQ. The S&P 500 recorded a small number of new highs and lows, while the NASDAQ Composite also registered mixed signals across listed stocks.
