NEW YORK, April 28 (Xinhua) -- U.S. stocks ended lower on Tuesday, with the Nasdaq Composite pulling back from recent record highs as investors grew concerned over a report that pointed to weakness in OpenAI.
The Dow Jones Industrial Average fell 0.05 percent to 49,141.93. The S&P 500 sank 0.49 percent to 7,138.8. The Nasdaq Composite Index shed 0.9 percent to 24,663.8.
Six of the 11 primary S&P 500 sectors closed higher, led by energy and consumer staples with gains of 1.65 percent and 0.99 percent, respectively. Technology and materials were the main laggards, declining 1.29 percent and 1.07 percent.
OpenAI has fallen short of its own internal targets for sales and users ahead of its anticipated initial public offering, according to a Wall Street Journal report. Shares of its key partners such as Oracle slumped amid renewed doubts about the sustainability of the AI spending boom.
"Investors shouldn't mistake a revenue miss for a verdict on AI," Buttonwood Funds founding partner and managing member Joseph Alagna said in written commentary. "The long-term thesis is intact, we are still in the earliest innings of a technological transformation that will reshape every sector of the global economy."
Investors are now closely watching this week's earnings from major technology companies. Alphabet, Amazon, Meta and Microsoft are scheduled to report results on Wednesday, followed by Apple on Thursday.
In energy markets, the United Arab Emirates' decision to leave the Organization of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ alliance has added pressure on the organization at a critical time for Persian Gulf oil producers. Oil prices remained elevated as the U.S.-Iran standoff continued to keep maritime traffic through the Strait of Hormuz at a standstill.
The West Texas Intermediate for June delivery rose 3.56 U.S. dollars, or 3.69 percent, to settle at 99.93 dollars a barrel on the New York Mercantile Exchange. Brent crude for June delivery added 3.03 dollars, or 2.8 percent, to settle at 111.26 dollars a barrel on the London ICE Futures Exchange.
Meanwhile, the Federal Reserve began its two-day policy meeting on Tuesday. Policymakers are widely expected to hold interest rates steady at Wednesday's announcement, with market participants paying close attention to outgoing Fed Chair Jerome Powell's remarks as his term nears its end and the leadership transition approaches.
