S&P 500 – 7,138.80 (-0.49%)

Dow Jones – 49,141.93 (-0.05%)

NASDAQ – 24,663.80 (-0.90%)

• TECHNOLOGY SELLOFF: OPENAI CONCERNS WEIGH ON AI LEADERS: Technology stocks were a key drag on performance after reports that OpenAI may have missed internal revenue and user growth targets, pressuring AI infrastructure, chipmakers, and data-center-related names. The news triggered a broader reassessment of near-term AI demand expectations across the sector.
• ENERGY RALLY: OPEC EXIT AND GEOPOLITICAL RISKS LIFT CRUDE: Energy markets resumed their upward momentum as uncertainty persisted around potential disruptions in the Strait of Hormuz. West Texas Intermediate (WTI) crude rose roughly 3% to near $99 per barrel, supported by geopolitical tensions and concerns over future supply coordination.
• SECTOR ROTATION: ENERGY AND DEFENSIVES LEAD WHILE TECH LAGS: Market performance reflected a clear divergence, with energy and defensive sectors such as consumer staples leading gains, while technology underperformed amid AI-related volatility and profit-taking in recent winners.
• RATES EDGE HIGHER: TREASURY YIELDS MOVE UP SLIGHTLY: Bond yields ticked higher, with the 10-year Treasury yield rising about 2 basis points to 4.36%, reflecting modest shifts in rate expectations ahead of key economic data and the Federal Reserve’s policy meeting.
• MARKET RESILIENCE: EQUITIES HOLD NEAR RECORD HIGHS: Despite geopolitical and sector-specific volatility, broader market momentum remains strong. The S&P 500 is still up approximately 13% from its March 30 lows and continues to trade near all-time highs, underscoring resilient underlying sentiment.
• EARNINGS STRENGTH: BROAD-BASED BEATS SUPPORT OUTLOOK: Early S&P 500 earnings results have been solid, with 82% of companies beating EPS estimates and delivering an average upside surprise of 12%. Full-year EPS growth expectations have been revised higher to 13.7%, pointing to a potential sixth straight quarter of double-digit earnings growth.
• CONSUMER CONFIDENCE: OUTLOOK IMPROVES ON JOB AND WAGE EXPECTATIONS: Data from the Conference Board showed U.S. consumer confidence rising to its highest level of 2026 in April, with the index climbing to 92.8 as expectations for employment and income improved.
• CREDIT OUTLOOK: DIMON WARNS OF DEEPER DOWNTURN RISK: JPMorgan CEO Jamie Dimon cautioned that when a credit market downturn eventually arrives, it “will be worse than people think,” highlighting lingering risks in financial conditions despite current market strength.
• FED WATCH: POLICY EXPECTED TO REMAIN ON HOLD: The Federal Open Market Committee began its April meeting, with markets widely expecting the Fed to hold rates steady at 3.50%–3.75% for a third consecutive meeting as policymakers assess inflation and growth trends.
• STOCK MOVERS: EARNINGS DRIVEN VOLATILITY ACROSS SECTORS: Coca-Cola rose after strong earnings and volume growth, while General Motors gained on improved guidance. Spotify fell on weaker profit guidance, UPS declined despite beating estimates, and Corning dropped on cautious revenue outlook. Bed Bath & Beyond surged on improving results, while Snap rallied on an upgrade.
• TECH AND SEMIS: MIXED PERFORMANCE DESPITE AI MOMENTUM: Microsoft edged higher following updates to its OpenAI partnership but later weakened on growth concerns. The PHLX Semiconductor Index fell 1%, ending an 18-session winning streak despite strength in select chip names including Nvidia, Intel, and Micron.
• WIDER MARKET HEADLINES: POLICY, AI, AND EARNINGS IN FOCUS: U.S. stocks finished lower as OpenAI-related concerns weighed on sentiment and energy markets reacted to the UAE’s OPEC exit. Amazon advanced its AI strategy with new agentic tools, Disney declined after FCC license orders, Starbucks rose on strong earnings and guidance, and AI-linked stocks broadly sold off on growth concerns tied to OpenAI.

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“It’s kind of fun to do the impossible.”  - Walt Disney

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Notable Stocks

• Apple (AAPL)
• Starbucks (SBUX)
• Disney (DIS)
• Meta Platforms (META)
• Coca-Cola (KO)

Weekly Notables

Disney Shares Fall After FCC Orders Early License Renewals for Eight Stations 

Disney (DIS) shares slipped on Tuesday after the Federal Communications Commission directed eight of the company’s television stations to renew their broadcast licenses ahead of schedule. The order, outlined in a two-page letter from FCC Chairman Brendan Carr, follows recent controversy after First Lady Melania Trump criticized late-night host Jimmy Kimmel over comments made on his program.

OpenAI Revenue Miss Sparks AI Selloff as Oracle and Chip Stocks Drop

Shares of major artificial intelligence infrastructure companies fell Tuesday after reports that OpenAI has missed internal revenue and user growth targets, raising concerns about the sustainability of aggressive AI spending across the sector. Oracle (ORCL) fell about 4%, pressured by its large-scale partnership with OpenAI, which involves a reported $300 billion, five-year agreement to provide computing capacity for AI operations.

Earnings Spotlight: Meta Platforms (META)

Meta Platforms (META) is scheduled to report earnings after the market closes Wednesday, and traders anticipate a big move from the social media giant's stock following the results. Analysts estimate that Meta's first-quarter revenue grew more than 30% year-over-year to $55.5 billion, while earnings per share are expected to come in at $6.68, up about 4% from the same time a year ago.

What's Ahead

A major week of earnings is underway, with five of the “Magnificent 7” reporting results: Alphabet, Amazon, Meta, and Microsoft today, followed by Apple on Thursday. Wall Street is also watching for progress in peace talks, as the US-Iran standoff keeps traffic through the Strait of Hormuz at a standstill.

April 29: February housing starts and building permits, March durable orders, February new home sales, FOMC interest rate decision, and expected earnings from Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta (META), AbbVie (ABBV), and Qualcomm (QCOM).
April 30: ECB rate decision, Q1 GDP first estimate, March PCE and core PCE prices, and expected earnings from Apple (AAPL), Eli Lilly (LLY), Mastercard (MA), Caterpillar (CAT), Merck (MRK), ConocoPhillips (COP), Amgen (AMGN), Altria (MO), SanDisk (SNDK), and Western Digital (WDC).
May 1: April ISM Manufacturing PMI, and expected earnings from Exxon-Mobil (XOM), Chevron (CVX), and Colgate-Palmolive (CL). Earnings from Berkshire Hathaway (BRK.B) are expected on Saturday, May 2.
May 4: Expected earnings from Palantir (PLTR), Vertex Pharmaceuticals (VRTX), and Tyson Foods (TSN).
May 5: ISM April Services PMI® and expected earnings from Advanced Micro Devices (AMD), Arista Networks (ANET), Lumentum (LITE), Strategy (MSTR), Eaton (ETN), Shopify (SHOP), Pfizer (PFE), Anheuser-Busch Inbev (BUD), and Duke Energy (DUK).