(Sharecast News) - US stocks fell on Tuesday with investors taking profits ahead of a number of key risk events over the coming days, while worries about the AI boom dented shares in the heavyweight chip sector.
Meanwhile, an ongoing stalemate between the US and Iran continues to drag on sentiment, while oil prices rose for the seventh straight session.
The Dow slipped 0.1% to 49,141.93, the S&P 500 fell 0.5% to 7,138.80, while the Nasdaq dropped 0.9% to 24,663.80. Both the S&P 500 and Nasdaq set record closing highs on Monday.
A number of key risk events are firmly on investors' minds this week, with monetary policy meetings in the US, UK, Canada and Eurozone over the coming days. As expected of all central banks, the Bank of Japan overnight held on to interest rates, but did raise its inflation forecasts owing to the energy crisis caused by the Iran war.
This week is also a big one for corporate earnings in the US, with five of the 'Magnificent 7' due to report. A host of blue chips have already published results this week, including Coca-Cola, UPS, General Motors and Verizon.
Meanwhile, oil prices continued to climb as investors awaited Donald Trump's response to a peace proposal from Iran, with reports suggesting he was unlikely to accept it because it sets aside any discussions about Tehran's nuclear program until the war is ended. Brent crude was 2.8% higher at $104.40 a barrel, while WTI climbed 3.7% to $99.93 a barrel.
In economic news, the Conference Board's Consumer Confidence Index rose to 92.8 in April, up from an upwardly revised 92.2 in March, though assessments of current and expected business conditions declined over the month.
US chip stocks slump
US chip stocks were under the cosh on Tuesday following a report that OpenAI recently missed its own targets for new users and revenue. According to the Wall Street Journal, OpenAI's CFO had told other company leaders she is worried about spending requirements of future computing contracts. Oracle, AMD, Nvidia, CoreWeave and Qualcomm all finished lower on Wall Street.
"The latest news about OpenAI, who created ChatGPT, means that capex plans for Microsoft, Amazon, Meta and Google will be scrutinised even more this week," said Kathleen Brooks, research director at XTB.
Beverages giant Coca-Cola rose after beating analysts' forecasts and raising its full-year profit guidance on the back of strong concentrate sales and price-mix effects in the first quarter.
Also higher was Kimberly-Clark after reiterating is full-year outlook as robust demand for its personal care and hygiene brands helped lift first-quarter earnings.
UPS posted lower sales and profits while reiterating full-year guidance, following a "critical transition" during the first quarter. While numbers came in ahead of estimates, shares in the world's largest package delivery company dropped.
Also in the red was Spotify which tanked after second-quarter guidance disappointed. The Swedish music streamer posted growth in first-quarter revenue and subscriber numbers and record operating income.
General Motors shares were on the rise after the Chevrolet, Buick, GMC and Cadillac manufacturer upgraded its full-year outlook on the back of a $500m tariff refund and a first-quarter earnings beat.
Dow Jones - Risers
Coca-Cola Co. (KO) $78.35 3.86%
Unitedhealth Group Inc. (UNH) $366.77 3.41%
International Business Machines Corporation (CDI) (IBM) $233.04 2.19%
Travelers Company Inc. (TRV) $310.02 2.07%
Microsoft Corp. (MSFT) $429.25 2.05%
Chevron Corp. (CVX) $188.36 1.94%
Apple Inc. (AAPL) $270.71 1.39%
Johnson & Johnson (JNJ) $227.79 1.09%
McDonald's Corp. (MCD) $292.39 0.75%
Salesforce.Com Inc. (CRM) $181.32 0.63%
Dow Jones - Fallers
Amgen Inc. (AMGN) $339.57 -2.01%
Cisco Systems Inc. (CSCO) $86.86 -1.99%
Caterpillar Inc. (CAT) $817.87 -1.32%
Goldman Sachs Group Inc. (GS) $926.55 -1.20%
Home Depot Inc. (HD) $329.06 -0.98%
American Express Co. (AXP) $315.90 -0.93%
Walt Disney Co. (DIS) $101.47 -0.86%
Boeing Co. (BA) $230.72 -0.26%
Nike Inc. (NKE) $45.03 -0.24%
Dow Chemical Co. (DOW) $38.01 -0.20%
S&P 500 - Risers
Centene Corp. (CNC) $49.57 13.93%
Franklin Resources Inc. (BEN) $29.46 6.86%
AvalonBay Communities Inc. (AVB) $183.50 5.29%
Robert Half Inc. (RHI) $27.52 5.24%
United Domin Rlty Trust (UDR) $36.21 4.83%
Packaging Corp. Amer (PKG) $222.59 4.73%
Nucor Corp. (NUE) $225.11 4.70%
Equity Residential (EQR) $65.15 4.54%
Essex Prty Trust Inc. (ESS) $267.88 4.30%
International Paper Co. (IP) $34.02 4.20%
S&P 500 - Fallers
Alexandria Real Estate Equities Inc. (ARE) $40.41 -11.30%
Zimmer Biomet Holdings Inc (ZBH) $82.80 -10.57%
Pentair plc (PNR) $82.86 -10.20%
Nektar Therapeutics (NKTR) $83.81 -9.77%
Universal Health Services Inc. (UHS) $162.54 -9.45%
Corning Inc. (GLW) $153.05 -8.85%
Applied Materials Inc. (AMAT) $381.11 -7.24%
Allegion (ALLE) $137.86 -7.10%
Align Technology Inc. (ALGN) $177.28 -7.07%
PACCAR Inc. (PCAR) $119.61 -6.63%
Nasdaq 100 - Risers
Check Point Software Technologies Ltd. (CHKP) $139.29 2.48%
Kraft Heinz Co. (KHC) $22.47 2.30%
Microsoft Corp. (MSFT) $429.25 2.05%
Tesla Inc (TSLA) $376.02 1.99%
Intuit Inc. (INTU) $400.38 1.96%
Workday, Inc. (WDAY) $121.18 1.76%
Incyte Corp. (INCY) $97.74 1.53%
Alphabet Inc. Class A (GOOGL) $349.78 1.44%
Apple Inc. (AAPL) $270.71 1.39%
Alphabet Inc. Class C (GOOG) $347.50 1.35%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $0.34 -13.49%
Applied Materials Inc. (AMAT) $381.11 -7.24%
Align Technology Inc. (ALGN) $177.28 -7.07%
PACCAR Inc. (PCAR) $119.61 -6.63%
QUALCOMM Inc. (QCOM) $150.00 -5.14%
KLA-Tencor Corp. (KLAC) $1,808.97 -5.09%
Lam Research Corp. (LRCX) $251.23 -4.87%
Broadcom Inc. (AVGO) $399.83 -4.78%
Liberty Global plc Series A (LBTYA) $11.52 -4.48%
Charter Communications Inc. (CHTR) $173.11 -4.36%
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