Stocks Retreat on AI Concerns as Oil Jumps
Stocks Retreat on AI Concerns as a report said OpenAI missed targets and Brent crude surged, leaving traders cautious before the Fed and tech earnings.
KEY TAKEAWAYS
- U.S. benchmarks fell after a report that OpenAI missed internal revenue and user targets.
- Brent crude rallied to $111.26 per barrel, adding inflation risk ahead of the Fed meeting.
- Tech earnings and the Fed meeting will focus scrutiny on returns from AI investments.
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Stocks retreated on April 28, 2026, as U.S. benchmarks fell following a report that OpenAI missed internal revenue and user targets. The decline coincided with a surge in Brent crude prices amid stalled talks over the Strait of Hormuz, leaving indexes lower ahead of the Federal Reserve meeting and a week of major tech earnings.
U.S. Indexes and Market Movers
The S&P 500 closed down 35.11 points, or about 0.5%, at 7,138.80, retreating from its record high. The Nasdaq Composite dropped 223.30 points, or about 0.9%, to 24,663.80, also below its peak. The Dow Jones Industrial Average edged down 25.86 points to 49,141.93.
Stocks linked to artificial intelligence were among the biggest decliners. Oracle fell more than 4%, CoreWeave dropped 5.8%, Broadcom declined 4.4%, Nvidia lost 1.6%, and Micron gave up 3.9%. Consumer staple Coca-Cola rose 3.9% after reporting stronger first-quarter profit and revenue driven by growth in China, the U.S., and India.
AI Report, Oil Surge, and Federal Reserve Meeting
A report indicated that OpenAI missed its internal targets for revenue and new users, raising fresh doubts about the sustainability of heavy AI investment. The report also highlighted competitive pressure from Google’s Gemini and Anthropic.
Brent crude prices surged, with the June contract rising 2.8% to settle at $111.26 per barrel and the July contract gaining 2.7% to $104.40, marking their highest levels since the U.S.-Iran ceasefire. The increase followed stalled negotiations over the Strait of Hormuz and was flagged as an inflationary risk that could complicate corporate outlooks and central bank policies.
The Federal Reserve began a two-day policy meeting on April 28, with officials expected to hold rates steady amid concerns that rising oil prices could add to inflationary pressures. In premarket trading, Nasdaq and S&P 500 futures were down about 1.3% and 0.7%, respectively, while Dow futures rose roughly 0.2%. At the open, the Nasdaq and S&P 500 declined about 1.15% and 0.54%, reinforcing a risk-off tone.
A heavy slate of tech earnings is scheduled for the week, including reports from Amazon, Google, Meta, and Microsoft. These results are likely to draw scrutiny on whether AI investments are translating into revenue and user growth.
