Technology stocks have driven equity markets downward as renewed concerns arise regarding the return on the significant investments made in artificial intelligence. Meanwhile, Brent crude oil prices have surged above $110 a barrel following the continued closure of the Strait of Hormuz.
Nasdaq 100 futures are down 0.6 percent, with the technology sector under pressure after the Wall Street Journal reported that OpenAI, which developed the ChatGPT chatbot, did not meet its targets for new users and sales. Shares of SoftBank Group Corp., a significant investor in OpenAI, fell 9.9 percent in Tokyo. Additionally, stocks of key OpenAI partners, including Oracle Corp., Advanced Micro Devices Inc., and CoreWeave Inc., also experienced declines in premarket trading in the United States.
Brent has risen for a seventh consecutive day. The White House announced that President Donald Trump will soon address Iran’s proposal to reopen the Strait of Hormuz.
The dollar strengthened alongside global bond yields, while the Japanese yen has reversed its gains after Bank of Japan Governor Kazuo Ueda refrained from signaling when interest rates may rise. S&P 500 futures dipped 0.2 percent.
The technology sector is experiencing a pause after a notable 18-day rally in chipmaker stocks contributed to an almost 10 percent increase in the S&P 500 in April. This surge was fueled by a renewed optimism surrounding artificial intelligence, while the broader market lagged due to rising oil prices. Earnings reports from four major hyper-scalers this Wednesday will be pivotal for sustaining the rally.
“The most significant line item isn’t revenue or margins; it’s capex,” stated Amanda Lyons, head of research at Energy Group Capital. “Any indication of reduced spending would be viewed negatively for the ecosystem, while a substantial increase could prompt questions regarding expected returns.”
European markets are facing increased bond losses amid fears that rising oil prices will lead to higher inflation and trigger central banks to tighten monetary policy. According to a European Central Bank survey, euro-area consumers expect prices to soar by 4 percent over the next 12 months, an increase from 2.5 percent in February.
As policy meetings approach for the Federal Reserve, European Central Bank (ECB), and Bank of England, traders are anticipating that decisions will maintain current interest rates. The outlook for future meetings is less certain, particularly with the Middle East conflict impacting projections; money markets expect the ECB and Bank of England to initiate rate hikes as early as June, while the Federal Reserve may hold rates steady for the remainder of the year.
“The rising oil price is beginning to manifest in macroeconomic data, reflected in increased inflation numbers and declining consumer confidence,” noted Anna Macdonald from Hargreaves Lansdown. “The longer the ongoing crisis persists, the more severe the consequences are likely to be, garnering significant attention from investors.”
Key market movements include:
Stocks
- The Stoxx Europe 600 was relatively unchanged as of 10:48 a.m. London time.
- S&P 500 futures decreased by 0.2 percent.
- Nasdaq 100 futures fell by 0.6 percent.
- Dow Jones Industrial Average futures rose by 0.3 percent.
- The MSCI Asia Pacific Index declined by 0.4 percent.
- The MSCI Emerging Markets Index dropped by 0.7 percent.
Cryptocurrencies
- Bitcoin decreased by 0.5 percent to $76,559.1.
- Ether also fell by 0.5 percent to $2,280.17.
Bonds
- The yield on 10-year Treasuries rose by two basis points to 4.35 percent.
- Germany’s 10-year yield increased by three basis points to 3.06 percent.
- Britain’s 10-year yield was up two basis points to 4.99 percent.
Commodities
- Brent crude increased by 3 percent to $111.53 a barrel.
- Spot gold dropped by 1.5 percent to $4,611.21 an ounce.
(This article was produced with the assistance of Bloomberg Automation.)
More stories can be found at bloomberg.com
Published on April 28, 2026
