S&P 500 and Nasdaq sink as OpenAI-linked stocks falter

US stocks diverged on Tuesday as OpenAI doubts weighed on tech stocks and the United Arab Emirates said it would leave the OPEC group of oil producers.

The Nasdaq Composite sank 1.3% to lead losses, while the S&P 500pulled back 0.7% on the heels of Monday’s record-high closes. Meanwhile, the Dow Jones Industrial Average , which started the day higher, bounced around the flat line.

OpenAI has fallen short of its own targets for sales and users ahead of its highly anticipated IPO, the Wall Street Journal reported. Shares of partners such as Oracle  slumped amid revived concerns about how long the AI spending boom will last.

Investors are now on high alert for clues to AI plans as the “Magnificent Seven” tech megacaps report quarterly results this week. Alphabet, Amazon , Meta , and Microsoft are on Wednesday’s docket, with Apple following the next day.

Meanwhile, the oil market is digesting news that the UAE is leaving the OPEC cartel, a move that deals a major blow to the bloc at an already historically precarious moment for Persian Gulf oil producers.

Wall Street is also watching for progress in peace talks, as the US-Iran standoff keeps traffic through the Strait of Hormuz at a standstill. President Trump will address Iran’s proposed interim deal to lift the blockade soon, the White House said, though Trump is reportedly not happy with the terms.

Brent crude crossed $112 per barrel to erase all of its ceasefire-driven losses, per Bloomberg data, while US WTI crude crossed back over $100.

Also in focus, the Federal Reserve begins its two-day meeting on Tuesday. Policymakers are expected to hold rates steady in their decision on Wednesday, and investors will listen out for Fed Chair Jerome Powell’s comments as his term draws to a close.