Key facts
- US stocks opened lower on Tuesday due to rising oil prices and Treasury yields.
- The Dow Jones Industrial Average fell 0.23% at the open.
- The S&P 500 fell 0.10% at the open.
- The Nasdaq Composite dropped 0.18% at the open.
- Concerns over AI demand and development also weighed on investor sentiment.
- Brent crude prices rose 1% to $105.68 a barrel.
Major U.S. stock indexes opened lower on Tuesday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all declining. Investors were cautious due to a combination of factors including higher crude oil prices, elevated Treasury yields, and an uncertain outlook for artificial intelligence (AI) demand and development.
The Dow Jones Industrial Average fell 118.0 points, or 0.23%, at the open to 52,303.24. The S&P 500 dropped 7.7 points, or 0.10%, to 7,612.3, while the Nasdaq Composite declined 46.2 points, or 0.18%, to 26,140.227.
Concerns about AI development and safety, amplified by statements from leaders of OpenAI and Anthropic calling for a slowdown, put pressure on technology and AI-related shares. Nvidia, a key player in AI chips, sank 3.4%, and Softbank Group, a major investor in OpenAI, lost 10.7% in Tokyo. In South Korea, the Kospi index dropped 3.3% due to losses in Samsung Electronics and SK Hynix.
Oil prices continued to climb, with Brent crude futures settling up 1% at $105.68 a barrel, driven by ongoing fighting in the Middle East and disruptions to supply routes. The 10-year Treasury yield also reached 5% on Monday, adding to market pressure. Despite these headwinds, some software companies like Intuit, Autodesk, and Adobe saw gains, helping to limit overall market losses.