The US stock futures are indicating a negative start on Wall Street in Tuesday’s trade, 28 April, as the lack of clarity over the resumption of US-Iran peace talks is keeping energy prices elevated. At the same time, chip stocks reversed their recent gains after a report pointed to weakness in OpenAI.
Futures tied to the three key indices — the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite — were trading with losses between 0.2% and 1.1%. Today’s move comes a day after the S&P 500 and Nasdaq Composite logged yet another record high.
OpenAI recently saw revenue and new users growth that were below its own targets, according to a Wall Street Journal report.
On the geopolitical front, the US is reviewing Tehran’s latest proposal to resolve the war in the Middle East, but a US official said President Donald Trump is dissatisfied with the proposal as it does not adequately address Iran’s nuclear programme.
Iran reportedly conveyed through Pakistan that hostilities could cease if Washington lifted its naval blockade, agreed to a revised framework for transit through Hormuz, and provided assurances against future military action.
While the Middle East conflict continues to influence the market sentiment, investor focus will also remain on earnings, as four megacap tech names — Alphabet, Meta Platforms, Microsoft, and Amazon — are scheduled to report on Wednesday after the bell. That effectively makes for a single evening capable of moving the entire index complex.
Expectations remain high that the tech majors will confirm another round of heavy infrastructure investment, which typically flows directly into chip demand. Apple will follow on Thursday after the close, rounding out what could be the most consequential earnings window of the quarter.
Beyond earnings, markets are also watching the Federal Reserve meeting and fresh inflation data due later this week.
The Bank of Japan kept its key interest rate unchanged at 0.75% on Tuesday, while the Federal Reserve, Bank of England, and European Central Bank are all expected to maintain the status quo but could strike a cautious tone amid rising oil-led inflation risks.
Although geopolitical tensions remain elevated and crude oil prices stay firm, US stocks have broken multiple record highs in April, led by renewed optimism around artificial intelligence and resilient corporate earnings, which helped Wall Street recoup all of its war-driven losses.
In the bond market, Treasury yields ticked higher following the rise in oil prices, with investors trimming aggressive expectations of policy easing as energy-driven inflation risks continue to build.
Crude prices march higher
The uncertainty surrounding the two-month-long conflict is intensifying fears that supply disruptions will persist for longer than expected, pushing crude oil prices back toward their recent peaks.
Benchmark US crude jumped $5.42 to $101.79 a barrel, while Brent crude, the international benchmark, gained another $4.3 to over a month high of $112 a barrel.
Brent prices were hovering near $70 per barrel before the war and have briefly surged to nearly $120 on a couple of occasions when concerns over prolonged disruptions escalated.
Stocks in focus today
Vested Finance noted that markets are opening on a cautious note today, with technology stocks leading declines while energy names are finding support from another sharp spike in oil prices.
The brokerage said the weakness is centered around AI-linked stocks. Shares of Oracle dropped 7.5%, while Advanced Micro Devices, and CoreWeave are all down between 2% and 5%, after reports that OpenAI has struggled to meet user growth and revenue targets.
On the other side of the market, energy is gaining strength. Brent crude has climbed above $110 a barrel as the Strait of Hormuz remains shut, extending a multi-day rally. This is supporting oil majors like BP, which also reported stronger earnings driven by trading gains amid elevated energy prices.
Vested Finance added that defensive sectors are also seeing mixed moves. Novartis is under pressure after reporting weaker-than-expected results, weighed down by generic competition impacting key drugs.
“The broader takeaway is clear. After a powerful AI-driven rally, tech stocks are taking a breather as investors reassess growth expectations. At the same time, rising oil prices are once again driving sectoral divergence, lifting energy while weighing on broader market sentiment,” it said.
(With inputs from Bloomberg and Reuters)
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