{
  "id": 12948744,
  "title": "Tech stocks drag Nasdaq lower on report of OpenAI revenue fall, high yields",
  "url": "https://urgent.news/2026/10/08/tech-stocks-drag-nasdaq-lower-on-report-of-openai-revenue-fall-high",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T19:56:06.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/us-stocks/wall-street-guide/tech-stocks-drag-nasdaq-lower-on-report-of-openai-revenue-fall-high-yields/articleshow/134800145.cms"
  },
  "original_language": "en",
  "account": "Technically driven US markets slipped as reports emerged that OpenAI’s annual revenue had fallen short of expectations, casting doubt on the long-term viability of the AI boom. The Nasdaq 100 plunged 1.9% and the S&P 500 slipped 0.9% by early afternoon in New York. Simultaneously, the yield on the 10-year Treasury soared to 5.3%, exerting downward pressure on rate-sensitive equities as worries about persistently high borrowing costs resurfaced. The Cboe Volatility Index, a barometer of investor sentiment, breached the 16 mark, indicating heightened market uncertainty.\n\nTechnology and artificial intelligence-related equities bore the brunt of the sell-off, with semiconductor stocks trailing behind by 3.5%. Oracle, another major player in the tech sector, felt the impact following a Bloomberg report that the firm was transporting natural gas to data centers to mitigate power supply constraints. This move, combined with a White House statement about potential military strikes against Iran, added to concerns about global energy supply volatility.\n\nHeightened energy supply risks, coupled with hawkish remarks from Federal Reserve Governor Christopher Waller, fueled inflation concerns. Waller hinted at the likelihood of additional interest rate hikes to rein in inflation, though policymakers retained the discretion to determine the optimal timing for rate adjustments. As the final days of the US midterm elections unfolded, regulatory discussions surrounding AI, coupled with spending on healthcare and defense, gained prominence among equity investors. Strategist Matt Miskin at Manulife John Hancock Investments noted a potential shift in investor sentiment towards parties perceived as favoring blue wave policies.\n\nBanks, already under pressure due to elevated interest rates on credit cards, auto loans, and mortgages, faced additional challenges. Strategists from Citigroup, Richard Schlatter and David Chew, projected a higher than average share of US companies beating third-quarter earnings forecasts, with 66% of Russell 1000 companies expected to exceed estimates, up from 60% in the previous quarter. They attributed this to the robustness of AI-related demand, which could boost earnings growth by about 54% among megacap technology companies.\n\nHowever, investor reactions to recent AI-related earnings have been mixed. Samsung delivered record preliminary quarterly results, yet they fell short of optimistic projections. On the flip side, Taiwan Semiconductor Manufacturing Company (TSMC) reported a 51% surge in sales. These divergent outcomes highlight the high expectations surrounding AI and the stakes for the US earnings season, which are expected to be heavily influenced by technology spending and demand. The backdrop of increasing policy uncertainty, as evidenced by a notable rise in an index tracking US economic policy uncertainty, further complicates market dynamics amid ongoing political developments.",
  "summary": "US equity indexes fell, influenced by megacap technology stocks and concerns regarding OpenAI's revenue performance. The Nasdaq 100 and S&P 500 saw declines as the yield on the 10-year Treasury rose. Additionally, increased oil prices and energy supply fears contributed to market pressure. Federal Reserve comments indicated potential for further interest rate increases, impacting credit sectors.…",
  "key_points": [],
  "editors_take": null,
  "illustration": "https://urgent.news/ill/12948744.png",
  "coverage": {
    "outlets": 7,
    "also_reported_by": [
      {
        "outlet": "Techmeme",
        "title": "Docs: OpenAI told investors its annualized revenue was nearing $50B at the end of September, well below the $70B reported by media based on investor docs (Financial Times)",
        "url": "https://urgent.news/2026/10/08/docs-openai-told-investors-its-annualized-revenue-was-nearing-50b-at",
        "published": "2026-10-08T16:51:53.000Z"
      },
      {
        "outlet": "Investing.com",
        "title": "OpenAI annualized revenue at $50bn, far below reports - FT",
        "url": "https://urgent.news/2026/10/08/openai-annualized-revenue-at-50bn-far-below-reports-ft",
        "published": "2026-10-08T17:05:06.000Z"
      },
      {
        "outlet": "CNBC Technology",
        "title": "Nvidia, Oracle, CoreWeave and other AI stocks sink on OpenAI revenue report",
        "url": "https://urgent.news/2026/10/08/nvidia-oracle-coreweave-and-other-ai-stocks-sink-on-openai-revenue",
        "published": "2026-10-08T18:18:31.000Z"
      },
      {
        "outlet": "Quartz",
        "title": "OpenAI says its annualized revenue is actually $50 billion, not $68 billion",
        "url": "https://urgent.news/2026/10/08/openai-says-its-annualized-revenue-is-actually-50-billion-not-68",
        "published": "2026-10-08T18:50:23.000Z"
      },
      {
        "outlet": "Channel News Asia",
        "title": "OpenAI's annualized revenue $20 billion less than previously signaled, FT reports",
        "url": "https://urgent.news/2026/10/08/openais-annualized-revenue-20-billion-less-than-previously-signaled",
        "published": "2026-10-08T21:12:29.000Z"
      },
      {
        "outlet": "MarketWatch",
        "title": "Micron, Nvidia and AI chip stocks fall as report on OpenAI’s revenue causes ‘undue concern’",
        "url": "https://urgent.news/2026/10/08/micron-nvidia-and-ai-chip-stocks-fall-as-report-on-openais-revenue",
        "published": "2026-10-08T22:08:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}