2026-04-28 22:23
publication
2026-04-28 22:23
Concerns about the future of the AI industry, coupled with rising oil prices, dragged New York stock markets from historic highs on Tuesday. However, the pullback was very mild and followed a spectacular rally over the last four weeks.
The S&P 500 index lost 0.49% on Tuesday and retreated to the 7,138.80-point line after again setting a new all-time high a day earlier. The Nasdaq Composite gave up 0.90% and finished with a score of 24,663.80 points. The recently slightly weaker Dow Jones industrial average (which did not set new peaks in April) gave up only 0.05% and ended the day at 49,141.93 points.
The AI sector is in the spotlight. The Wall Street Journal wrote that OpenAI (the creator of Chat GPT) did not achieve its own goals for acquiring new users and sales. That hasn't cooled the euphoria in the AI industry, which fueled a 40 percent rally in the semiconductor industry index in the last month. As a result, Broadcom's shares dropped by 4.4%, AMD's by 3.4%, and Nvidia's by 1.6%.
Advertisement
– Open AI has given investors some food for thought on whether business growth is slowing down and what this means for capital spending. You have major hyperscalers who will publish quarterly results tomorrow, which probably motivated some investors to take profits, Chuck Carlson, head of Horizon Investment Services, told Reuters.
The second problem was the lack of resolution of the Strait of Hormuz dispute. This key water area, although closed, still remains generally “impassable” for tankers. This means that every day the world is short of 10-15 million barrels of crude oil that used to flow there before March '26. Brent crude oil now costs over $104, exceeding the hundred-dollar pain threshold for consumers.
– The United States and Israel are unable to force a solution to the war with Iran that would achieve most of their maximalist goals. Resolving the war by military or diplomatic means still seems distant, even though a ceasefire is in place, wrote Hasnain Malik, head of geopolitical risk at Tellimer Research, in a report.
– The discrepancy between optimism in equity markets and more cautious signals from bond and oil markets reinforces the view that geopolitical developments remain an active and important factor in risk management, says Anthony Saglimbene, chief market strategist at Ameriprise Financial.
Investors will be closely watching the financial reports of companies this week, including five of the “Magnificent Seven” of tech giants. Alphabet, Amazon, Meta Platform and Microsoft will report their results on Wednesday, and Apple will do so on Thursday.
Meanwhile, United Parcel Service's stock fell 4%. after the logistics company reported a decline in adjusted quarterly profit. This company is considered by some to be a kind of barometer of the economic situation in the USA. However, General Motors increased by 1%. after the automaker raised its annual earnings forecast. Coca-Cola shares gained over 4%. after the beverage giant raised its annual adjusted profit forecast. Spotify fell over 12%. after the company forecast worse-than-expected second-quarter profit.
In the macroeconomic area, this time we received a positive surprise from consumers. The American consumer confidence index increased to 92.8 points in April. with 92.2 points a month earlier, after correction from 91.8 points. – according to the Conference Board report. Analysts expected this index to reach 89 points.
prepared by K.K
The publication contains affiliate links.
