Dow Jones, S&P 500, Nasdaq: Tech stocks recover after new AI fear - oil prices fall slightly
Relaxation in the Middle East and new sales forecasts from OpenAI reassure investors on Wall Street.
Quick Look
- U.S. stock markets posted gains on Friday as easing geopolitical tensions and more optimistic revenue forecasts from OpenAI eased concerns about an AI bubble.
- The Dow Jones and Nasdaq indices gained.
AI-generated summary
Why It Matters
AI stocks were under pressure due to reports of lower sales at OpenAI. Geopolitical tensions in the Middle East have recently influenced oil prices.
Dusseldorf. Slightly falling oil prices and easing concerns about the sustainability of the investment boom in the field of artificial intelligence (AI) gave the US stock markets a tailwind on Friday. Declining geopolitical tensions in the Middle East brightened investor sentiment.
The Dow Jones standard gains and rises to 51,674 points.
The more widely diversified S&P 500 is trading slightly higher at 7,788 points.
The Nasdaq technology exchange is up 0.4 percent at 27,294 points.
The Nasdaq 100, a reflection of the 100 non-financial companies with the highest market capitalization, is trading slightly higher at 30,802 points.
The day before, massive losses in AI stocks had dragged down the Nasdaq technology exchange significantly. This was triggered by a media report about the sales of the ChatGPT developer OpenAI, which increased fears that the high AI spending is becoming increasingly difficult to justify.
According to the Financial Times, OpenAI recently told investors that the AI company's annualized sales at the end of September were nearly $50 billion, about $20 billion lower than previously reported.
This was followed on Friday by a report from the Bloomberg agency, according to which, according to insiders, OpenAI is aiming for annualized sales of at least $70 billion by the end of 2026. The increase is expected to come primarily from the increasing business with companies.
The new number seems to calm the market. Nevertheless, many experts believe that the high valuations of AI companies are exaggerated, especially since the companies are still deeply in the red. According to critics, even the high growth rates do not justify such high valuations.
Open Questions
- How sustainable are OpenAI's new revenue targets?
- How does the oil market react to further geopolitical developments?
