US Stocks Drag Down Industrials and Energy, Wall Street Retreats from Record

JAKARTA - US stocks closed lower on Tuesday. Wall Street was pressured by a selloff in chip stocks and rising oil prices, as investors awaited reports on the performance of technology giants.

Anadolu Agency quoted Wednesday, April 29, reported that the Dow Jones index fell 0.05 percent or 25.86 points to 49,141.93.

The S&P 500 was down 0.49 percent at 7,138.8 after a record high the previous day. The Nasdaq, which contains many technology stocks, fell deeper, 0.9 percent, to 24,663.8.

The biggest pressure came from chip stocks. A Wall Street Journal report said OpenAI's revenue and user growth were below internal targets. The report also said OpenAI CFO Sarah Friar warned of risks in fulfilling computing contract obligations if revenue did not grow quickly.

The impact was immediate. Nvidia fell more than 1.6 percent. Broadcom fell 4.4 percent. Advanced Micro Devices fell 3.4 percent. Intel fell 0.5 percent. Oracle also fell more than 4 percent.

Investors are being cautious as a number of big tech names are due to release their financial reports. Alphabet, Amazon, Meta Platforms, and Microsoft are scheduled to report on Wednesday. Apple follows on Thursday.

Oil prices add to the burden of the market. US-Iranian talks on the war seem to have stalled. President Donald Trump canceled plans to send Steve Witkoff and Jared Kushner to Pakistan to discuss an Iran-related ceasefire. Trump said negotiations could be done by phone.

Iranian Foreign Ministry spokesman Esmaeil Baqaei said there were no planned meetings between Tehran and Washington.

However, the White House said Trump and his national security team discussed Iran's offer to reopen the Strait of Hormuz if the war ended and the US lifted the blockade.

On Tuesday, Trump claimed Iran was in a "state of collapse" and called on the US to reopen the waterway as soon as possible.

West Texas Intermediate crude prices rose 3.3 percent to above $100 a barrel. Brent rose 2.5 percent to above $111 a barrel.

In Europe, markets closed mixed. The Stoxx 600 fell 0.37 percent, France's CAC 40 weakened 0.46 percent, and Germany's DAX fell 0.27 percent. However, the UK FTSE 100 rose 0.11 percent, Italy's FTSE MIB strengthened 0.77 percent, and Spain's IBEX 35 added 0.46 percent.

Investors are still looking at the financial statements of major technology companies and oil price developments amid stalled US-Iranian talks.