Wall Street Falls as Oil Prices Rise and Tech Stocks Slide

Wall Street stocks declined for a second consecutive session on Thursday as rising oil prices, Treasury market volatility, and concerns over OpenAI’s revenue outlook weighed on investor sentiment.

At 13:07 ET, the S&P 500 fell 0.7% to 7,752.41, while the Nasdaq Composite dropped 1.3% to 27,186.62. The Dow Jones Industrial Average slipped 0.2% to 51,084.11.

Technology shares faced additional selling pressure after the Financial Times reported that OpenAI’s annualized revenue was approximately $20 billion below previously circulated estimates. The S&P 500 technology sector declined nearly 2% following the report.

Concerns about artificial intelligence financing also unsettled markets. The Wall Street Journal reported that Broadcom was arranging more than $50 billion in financing for OpenAI’s custom AI chips. Meanwhile, Oracle reportedly discussed major chip purchases with Apollo and Goldman Sachs, while SpaceX sought $40 billion to acquire Nvidia processors.

U.S. Treasury yields fluctuated as investors assessed inflation risks, government borrowing, and global monetary policy. The benchmark 10-year Treasury yield declined four basis points to 5.238%, while the 30-year yield eased to 5.617%.

However, a $22 billion auction of 30-year Treasury bonds attracted disappointing demand, reinforcing concerns about investor appetite for long-term government debt.

Federal Reserve interest rate expectations remained relatively stable despite bond market turbulence. CME FedWatch data indicated an approximately 81% probability that policymakers would maintain current rates later this month.

Recent economic indicators presented mixed signals. September nonfarm payrolls increased by just 29,000, while unemployment rose to 4.2%. However, weekly jobless claims declined to 197,000, suggesting continued resilience in the labor market.

Oil prices remained elevated amid Middle East supply disruptions. Brent crude climbed 3.7% to $103.91 per barrel, although gains moderated after President Donald Trump ruled out military strikes against Iran before November’s midterm elections.

Among individual stocks, Chipotle Mexican Grill surged more than 7% following reports that Starbucks had explored a potential acquisition. Starbucks shares declined 4.1%.

PepsiCo gained nearly 2% after exceeding quarterly earnings expectations despite lowering its annual profit forecast.

Investors now await upcoming earnings reports from major U.S. banks as inflation concerns, geopolitical tensions, and AI investment spending continue influencing Wall Street's direction.