Tech led a retreat in US stocks before the bell on Friday, as a report of a potential delay to OpenAI’s IPO added to the headwinds that have whipsawed markets this week.
Nasdaq 100 futures (NQ=F) tumbled 1.2%, while those on the S&P 500 (ES=F) moved down 0.5% after both indexes closed lower Thursday for the fourth straight time this week. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech names, nudged down 0.1%
Concerns are growing that the skyrocketing cost of memory and storage components could hit device makers, after Apple (AAPL) raised prices of its MacBooks and iPads. Memory chipmaker Micron’s (MU) stellar earnings showed the squeeze is set to continue.
At the same time, a New York Times report that OpenAI (OPAI.PVT) is planning to push back its mega-IPO until 2027 is also dragging on appetite for techs.
The AI trade was already under pressure as bets grow on a Federal Reserve interest-rate hike this year. A hot May reading of the Fed’s preferred inflation gauge, the Personal Consumption Expenditures index, kept that prospect alive.
Meanwhile, oil prices slumped 3.6% as tanker traffic continued in the Strait of Hormuz despite an attack on a container ship. Brent crude futures (BZ=F) sank to below $73 a barrel, while WTI crude traded at just over $69. While the US and Iran have agreed a 60-day ceasefire, reports of turmoil in the key waterway continue to emerge as Tehran eyes imposing charges for transit.
