US stocks finished mixed on Thursday as concerns about OpenAI’s revenue outlook triggered a sell-off in technology shares, while rising oil prices added to inflation worries.
The Nasdaq Composite fell 1.25% to 27,193.34, while the S&P 500 declined 0.47% to 7,765.36. The Dow Jones Industrial Average edged up 51.77 points, or 0.1%, to 51,231.64.
Technology stocks came under pressure following reports that OpenAI’s annualised revenue was below previously indicated levels, raising questions about spending across the artificial intelligence sector.
Oracle dropped more than 5%, while Nvidia fell around 3%, AMD declined nearly 4% and Broadcom shed 4.4%. The semiconductor sector fell 3.4%, reflecting broader weakness across chipmakers.
Oil prices surged amid conflicting signals over the Iran war. President Donald Trump initially ruled out a deal with Tehran but later indicated the US would not launch further attacks before November’s midterm elections.
Brent crude rose 4.07% to US$104.28 a barrel, while West Texas Intermediate gained 3.64% to US$91.49.
US Treasury yields eased following solid demand at a 30-year bond auction. The benchmark 10-year yield fell five basis points to 5.227%, while the 30-year yield declined six basis points to 5.601%.
Despite the pullback in yields, investors remain concerned that higher energy prices could sustain inflation and prompt further Federal Reserve rate increases.
Australian Market Outlook
Australian shares are set to open modestly higher, with S&P/ASX 200 futures up 19 points, or 0.2%, to 8,715, reversing earlier losses.
The positive futures lead comes despite weakness in US technology stocks, although renewed volatility in oil prices and elevated global bond yields remain key risks for the local market.
Investors will continue to monitor developments in the Iran war and their implications for energy prices, inflation and the outlook for global interest rates.
