The US stock market indices opened on a mixed note on Tuesday, with the S&P 500 and Nasdaq opening lower and Dow Jones ticking higher at open.
Tech-heavy Nasdaq index was weighed down by over 1% after a sharp fall in stocks of major chipmakers like Nvidia Corp. Advanced Micro Devices Inc., and Micron Technology Inc. The shares fell amid OpenAI registering a miss in its topline for the quarter under review.
S&P 500 opened 0.6% lower at 7,132.77, Nasdaq slumped 1.12% at open to 24,609.57, whereas Dow Jones Industrial Average was trading 0.3% higher at 49,298.92.
Bellwether company Nvidia opened 3.31% lower at $209.45, stock of Micron tech slipped nearly 4% at open to $504.22, AMD slipped nearly 5% to $318.62, Larry Ellison-owned Oracle Corp. traded 3.7% lower at $166.59, while shares of Intel Corp. were also trading over 2% lower at $82.85.
As of 10:20 a.m. EST Dow Jones also slipped to red and traded 0.13% lower at 49,103.37, while Nasdaq and S&P 500 traded 0.75% and 0.5% lower at 24,698 and 7,138.70 respectively.
OpenAI missed multiple monthly revenue targets earlier this year after losing ​ground to ​Anthropic in coding and ​enterprise markets, according to a Wall Street Journal report.
The Sam Altman-led company, while not listed on the New York Stock Exchange, is the arguably the largest player in the AI space and therefore is responsible for dictating future trends and reflecting on the health of the industry.
Besides declining chipmakers, rising oil prices also dragged the wall street lower. West Texas Intermediate traded nearly 4% higher at $100.12 per barrel, while global benchmark Brent Crude traded 2.82% higher at $104.56 per barrel.
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After the market opened, most of the sectoral indices traded in the red. The decline was Information Technology sector, Materials, and Industrials sector. Only four of the indices traded in the green, with the most gains seen in the Energy sector and Financial sector.
The Dollar Spot Index strengthened against major currency to rise 0.2%, while euro fell 0.2% to $1.1698, British pound fell 0.3% to $1.3495 and the Japanese yen was little changed at 159.52 per dollar.
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