Nasdaq futures slide as fresh concerns around AI pressure tech stocks

By Niket Nishant and Utkarsh Hathi

April 28 (Reuters) – Futures tracking the tech-heavy Nasdaq 100 index fell more than 1% on Tuesday, as investors questioned whether the artificial intelligence boom can deliver meaningful growth for technology stocks.

The Wall Street Journal reported that AI heavyweight OpenAI had missed internal targets for weekly users and revenue, raising concerns over the ChatGPT parent’s ability to support its massive spending on data centers.

“That’s putting pressure on the Nasdaq and on the S&P because tech and communication services make up about 40% of the benchmark,” said Art Hogan, chief ​market strategist at B Riley Wealth.

“If OpenAI is seeing some degradation, that will shuffle the deck a bit in terms of what the leadership looks like.”

Although the company is privately held, its fortunes are closely tied to several major technology stocks. Its financial performance is often viewed as a gauge of AI demand and could have wide-ranging implications for public equity markets.

Shares of Oracle, whose reliance on OpenAI for its cloud computing ambitions has been under scrutiny, fell 6.7% in the premarket session.

Chip stocks also dropped, with Nvidia, AMD and Arm Holdings down 2.8%, 5.9% and 8.8%, respectively.

At 8:04 a.m. ET, Nasdaq 100 E-minis fell 348.25 points, or 1.27%, while S&P 500 E-minis were down 49 points, or 0.68%. Dow E-minis rose 85 points, or 0.17%.

MIDDLE EAST STALEMATE WEIGHS ON SENTIMENT

The U.S.-Iran war remains an overhang on equities, shaping market sentiment even during the busiest week of the corporate earnings season this quarter. There are mounting concerns that the impasse in negotiations could keep oil prices elevated for longer.

A U.S. official said President Donald Trump was unhappy with the latest Iranian proposal ​on resolving the conflict in the Middle East, pouring cold water on hopes for a deal that had sent the S&P 500, the Nasdaq 100, and the Nasdaq Composite to record highs in recent days.

“The U.S. and Israel are not able to force a settlement of the war with Iran that achieves most of their maximalist objectives,” wrote Hasnain Malik, head of geopolitical risk at Tellimer Research.

“Resolution of the war, via military or diplomatic means, still looks a long way off, even though the ceasefire is holding.”

Oil prices are 54% higher than pre-war levels as the crucial shipping route through the Strait of Hormuz remains disrupted. Brent crude futures topped $110 a barrel for the first time in three weeks.

Meanwhile, investors are scrutinizing earnings from a bunch of corporate giants on Tuesday.

United Parcel Service dipped 4.6% premarket after the logistics firm reported a sharp drop in quarterly adjusted profit. 

General Motors rose 1.8% after the automaker lifted its full-year earnings forecast on a resilient U.S. car market and an expected tariff refund. 

Coca-Cola shares gained 2.6% after the beverage giant lifted its annual adjusted profit forecast. 

Music-streaming platform Spotify fell 11.6% after forecasting second-quarter profit below estimates. 

(Reporting by Niket Nishant in Bengaluru; Editing by Devika Syamnath)