NEW YORK: Wall Street stocks were mostly lower early Tuesday on worries about the artificial intelligence profitability outlook and as oil prices ticked higher.
Analysts cited a Wall Street Journal report that pointed to doubts within OpenAI about the company’s revenue outlook and its capacity to build costly new data centers after it missed its own targets.
OpenAI is not publicly traded, but Nvidia and Oracle were among the AI-related stocks to fall sharply.
READ MORE: Wall St indexes enter earnings-heavy week on cautious footing
About 10 minutes into trading, the tech-rich Nasdaq Composite Index was down 0.9 percent at 24,670.37.
The broad-based S&P 500 fell 0.4 percent to 7,143.08, while the Dow Jones Industrial Average added 0.3 percent at 49,323.38.
“This isn’t the first time we’ve had significant questions about the viability of some of the large language model developers,” said B. Riley Wealth Management’s Art Hogan, who also pointed to the drag from higher crude prices.
Futures of US benchmark West Texas Intermediate and international contract Brent were both up more than three percent, with no visible progress on reopening the Strait of Hormuz.
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