Nasdaq Falls 0.9% as OpenAI Miss Rattles AI Bets
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- Nasdaq fell 0.9% on April 28, pulling back from a record close hit the prior day, while the S&P 500 dropped 0.5% and the Dow lost 31 points (0.1%).
- iShares Semiconductor ETF declined for the second time in April after a Wall Street Journal report that OpenAI missed revenue and user targets.
- OpenAI's revenue and user shortfall hit a day before quarterly results from Alphabet, Meta Platforms, Amazon.com, and Microsoft — the four largest AI spenders on Wall Street.
- Steve Sosnick, chief strategist at Interactive Brokers, told Barron's that 'so much of the recent market action was predicated upon continued AI spending.'
- March producer price index data and Federal Reserve Chairman Jerome Powell's press conference are also slated for the next trading day, adding two more macro catalysts beyond tech earnings.
- Sosnick said tomorrow's earnings will reveal whether OpenAI's problems are company-specific or part of a broader trend, noting hyperscaler spending plans were already under heavy scrutiny.
Why it matters: The OpenAI revenue miss lands one day before Alphabet, Meta, Amazon, and Microsoft — four of the largest AI spenders — report earnings, making their results the next test of whether the AI-driven rally that pushed the Nasdaq to record highs has staying power.
