Nasdaq Futures Plunge as AI Concerns Resurface, FOMC Meeting and Earnings in Focus

June Nasdaq 100 E-Mini futures (NQM26) are trending down -1.24% this morning as concerns resurfaced over whether the massive amounts of investment in AI will ultimately pay off.

The Wall Street Journal reported on Monday that OpenAI recently fell short of its own targets for new users and revenue, raising concerns among executives about whether it can meet its spending commitments. The ChatGPT developer missed several monthly sales targets in 2026 as rival Anthropic PBC gained ground in the coding and enterprise markets, the report said. Shares of companies with ties to OpenAI, including Oracle, Advanced Micro Devices, and CoreWeave, slumped in pre-market trading.

Adding to the downbeat mood, the price of WTI crude climbed over +4% on Tuesday as the Strait of Hormuz remained closed. The Wall Street Journal reported that President Trump and his national security team are skeptical of Iran’s latest proposal to reopen the strait, although U.S. officials said negotiations will continue. The White House is expected to deliver its response and counterproposals in the coming days. The 10-year T-note yield rose one basis point to 4.36% as higher oil prices intensified worries about a prolonged inflation shock.

Investors are now awaiting the start of the Federal Reserve’s two-day policy meeting as well as a new batch of U.S. economic data and corporate earnings reports.

In yesterday’s trading session, Wall Street’s main stock indexes closed mostly higher, with the S&P 500 and Nasdaq 100 notching new record highs. Most of the Magnificent Seven stocks advanced, with Nvidia (NVDA) rising +4% to lead gainers in the Dow and Alphabet (GOOGL) gaining more than +1%. Also, Sandisk (SNDK) climbed over +8% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after Melius Research initiated coverage of the stock with a Buy rating and a two-year price target of $1,350. In addition, Organon & Co. (OGN) jumped more than +16% after Sun Pharma agreed to acquire the company for $14 per share in an all-cash transaction with an enterprise value of $11.75 billion. On the bearish side, chip stocks sank, with Arm Holdings (ARM) slumping over -8% to lead losers in the Nasdaq 100 and Marvell Technology (MRVL) falling more than -3%.

“With headlines on Iran continuing to provide mixed messages, our sense is that investors will shift their focus toward individual company results,” said Chris Senyek at Wolfe Research.

The Federal Reserve kicks off its two-day meeting later in the day. The central bank is widely expected to keep the Fed funds rate unchanged in a range of 3.50% to 3.75% on Wednesday, as energy prices remain elevated and supply chains remain snarled due to the Middle East conflict. Investors will watch closely to see whether the Fed signals in its post-meeting statement that rate hikes are a possibility. Market participants will also be paying close attention to Chair Jerome Powell’s press conference for any update on whether he plans to stay on the Fed’s Board of Governors after his term ends in May. Although U.S. central bank chiefs have traditionally stepped down from their board seats once their leadership terms end, Powell said last month he might stay and would “make that decision based on what I think is best for the institution and for the people we serve.”

First-quarter corporate earnings season is in full swing, with investors looking ahead to fresh reports from prominent companies today, including Visa (V), Coca-Cola (KO), T-Mobile US (TMUS), Seagate Technology Holdings (STX), United Parcel Service (UPS), and Booking Holdings (BKNG). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +12% increase in quarterly earnings for Q1 compared to the previous year, marking the sixth consecutive quarter of double-digit growth.

On the economic data front, investors will focus on the U.S. Conference Board’s Consumer Confidence Index, which is set to be released in a couple of hours. Economists, on average, forecast that the April CB Consumer Confidence index will stand at 89.0, compared to last month’s figure of 91.8.

The U.S. S&P/CS HPI Composite - 20 n.s.a. will also be released today. Economists expect the February figure to ease to +1.1% y/y from +1.2% y/y in January.

The U.S. Richmond Fed Manufacturing Index will be released today as well. Economists foresee this figure coming in at 2 in April, compared to the previous value of 0.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.36%, up +0.25%.

The Euro Stoxx 50 Index is up +0.28% this morning as investors digest a new wave of corporate earnings reports and monitor developments in the Middle East, while bracing for monetary policy decisions from major central banks. Energy stocks led the gains on Tuesday, with BP Plc (BP-.LN) rising over +3% after the energy giant reported better-than-expected Q1 profit. Bank stocks also advanced. At the same time, healthcare stocks fell, pulled lower by a more than -2% drop in Novartis AG (NOVN.Z.IX) after the drugmaker reported weaker-than-expected quarterly results. A key European Central Bank survey showed on Tuesday that Eurozone consumers significantly increased their inflation expectations in March, an alarming signal for policymakers as they prepare to set interest rates. Inflation expectations for one year ahead surged to 4.0% in March from 2.5% the previous month, while three-year-ahead expectations climbed to 3.0% from 2.5%, both well above the ECB’s 2% medium-term target. A separate survey showed that Eurozone banks tightened credit access in the three months through March and expect to continue doing so this quarter as the Middle East conflict drives up energy prices and funding costs. Meanwhile, Eurozone government bond yields climbed on Tuesday as concerns grew that higher oil prices would fuel inflation and prompt regional central banks to tighten monetary policy. Investors are awaiting monetary policy decisions from the ECB and the Bank of England later this week, where rates are widely expected to remain on hold, though the outlook for subsequent meetings has become more uncertain. In other corporate news, Telenor ASA (TEL.O.DX) sank over -7% after Norway’s leading telecom operator reported weaker-than-expected Q1 core earnings.

The European economic data slate is mainly empty on Tuesday.

Asian stock markets today closed in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.19%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.02%.

China’s Shanghai Composite Index closed slightly lower today as U.S.-Iran peace talks showed scant signs of progress, leaving investors cautious. The Wall Street Journal reported that President Trump and his national security team are skeptical of Iran’s latest proposal to reopen the Strait of Hormuz, although U.S. officials said negotiations will continue. Also weighing on sentiment was China’s order for U.S. tech giant Meta to unwind its acquisition of AI startup Manus. Cloud computing and software stocks led the declines on Tuesday. Defense stocks also slid. Limiting losses, real estate stocks outperformed. Meanwhile, the Politburo, the ruling Communist Party’s top decision-making body, announced no new policy measures on Tuesday, as widely expected. China’s top leadership adopted an upbeat tone on the economy, saying key indicators had exceeded expectations at the start of the year, according to the official Xinhua News Agency. Leaders at the meeting reiterated their commitment to maintain market stability and strengthen energy security as the Middle East conflict drags on. In corporate news, WuXi AppTec popped +10% after the Chinese pharmaceutical major posted strong Q1 earnings. Investor focus is now squarely on China’s official PMIs for April due later this week, as surveys elsewhere begin to reflect the strain from supply-chain disruptions and price pressures stemming from the Middle East conflict. Many economists anticipate a pullback in both gauges, with some projecting a drop back below the 50 threshold that separates contraction from expansion.

Japan’s Nikkei 225 Stock Index closed lower today, retreating from a record high after the Bank of Japan left its policy rate unchanged in a split decision. Losses in technology stocks led the overall market lower on Tuesday, with SoftBank Group plunging nearly -10% amid renewed concerns over the outlook for AI. At the same time, financial stocks climbed on expectations of a near-term BOJ rate hike. As widely expected, the BOJ kept its policy rate unchanged at 0.75% at the conclusion of its two-day meeting on Tuesday, but signaled that rate hikes remain firmly on the table as it raised its inflation forecasts and three of its nine board members proposed raising borrowing costs. Board members Hajime Takata, Naoki Tamura, and Junko Nakagawa each advocated raising the policy rate to 1%, marking the largest number of dissents since January 2016 and signaling that hawkish momentum within the board is gathering pace. “Nakagawa’s dissent may have been a strategic move to signal to the public that support for rate hikes is gaining traction across the board, rather than being confined to the usual two rate-hike proponents,” said Mizuho Securities economist Yusuke Matsuo. The BOJ also sharply revised up its price forecasts in its quarterly report and said underlying inflation is projected to reach its target between the second half of fiscal 2026 and fiscal 2027. Daiwa Securities economist Kento Minami said the BOJ’s policy decision was a “hawkish hold” that keeps the door open for a rate hike in June. The yen strengthened as much as 0.3% against the dollar following the BOJ’s decision, but pared those gains after Governor Kazuo Ueda stopped short of providing a clear signal on the timing of the next rate hike. “In a situation where upside inflation risks have significantly materialized or are continuing to grow, and provided the risk of an economic downturn or a major recession remains limited, a rate hike would be a possibility,” Ueda said. In corporate news, Nissan Motor rose over +3% after the automaker provided a more upbeat full-year earnings forecast despite continued sales weakness. Investor attention for the remainder of the week is on a slew of Japan’s economic data, including Tokyo core CPI, retail sales, and industrial production. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +7.31% to 31.71.

The Japanese March Unemployment Rate was 2.7%, weaker than expectations of no change at 2.6%.

Pre-Market U.S. Stock Movers

CoreWeave (CRWV) sank about -5% and Oracle (ORCL) slid over -4% in pre-market trading as The Journal’s report raised investor concerns about the cloud-computing companies’ relationships with OpenAI.

Chip stocks slumped in pre-market trading as The Journal’s report stoked fears of a potential slowdown in AI demand. Advanced Micro Devices (AMD) and Marvell Technology (MRVL) were down over -4%. Also, Broadcom (AVGO) was down over -3%.

Rambus (RMBS) tumbled more than -17% in pre-market trading after the semiconductor and silicon technology company issued soft Q2 product revenue guidance.

Bed Bath & Beyond (BBBY) jumped over +34% in pre-market trading after the retailer reported stronger-than-expected Q1 results.

LendingClub (LC) surged more than +12% in pre-market trading after the lending platform posted upbeat Q1 results and gave solid Q2 EPS guidance.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Tuesday - April 28th

Visa Inc. (V), The Coca-Cola Company (KO), T-Mobile US (TMUS), Welltower (WELL), Corning (GLW), Booking Holdings (BKNG), Seagate Technology Holdings (STX), S&P Global (SPGI), Starbucks (SBUX), United Parcel Service (UPS), Waste Management (WM), The Sherwin-Williams Company (SHW), Enterprise Products Partners (EPD), American Tower (AMT), Hilton Worldwide Holdings (HLT), Ecolab (ECL), Robinhood Markets (HOOD), Mondelez International (MDLZ), General Motors Company (GM), PACCAR (PCAR), Bloom Energy (BE), Teradyne (TER), NXP Semiconductors (NXPI), ONEOK (OKE), Sysco (SYY), Arch Capital Group (ACGL), Ingersoll Rand (IR), Kimberly-Clark (KMB), Extra Space Storage (EXR), Xylem (XYL), FirstEnergy (FE), Edison International (EIX), PPG Industries (PPG), Fair Isaac (FICO), Markel Group (MKL), Equity Residential (EQR), CMS Energy (CMS), Expand Energy (EXE), Omnicom Group (OMC), Veralto (VLTO), Centene (CNC), Incyte (INCY), Zimmer Biomet Holdings (ZBH), Essex Property Trust (ESS), Watsco (WSO), Watsco (WSO.B), W. P. Carey (WPC), F5, Inc. (FFIV), CoStar Group (CSGP), Pentair (PNR), Omega Healthcare Investors (OHI), Franklin Resources (BEN), TransUnion (TRU), Ares Capital (ARCC), RenaissanceRe Holdings (RNR), Avery Dennison (AVY), Allegion (ALLE), Unum Group (UNM), Webster Financial (WBS), Invesco (IVZ), Smithfield Foods (SFD), The Ensign Group (ENSG), Applied Industrial Technologies (AIT), BXP, Inc. (BXP), Element Solutions (ESI), UMB Financial (UMBF), Armstrong World Industries (AWI), STAG Industrial (STAG), PJT Partners (PJT), Central Bancompany (CBC), Sensata Technologies Holding (ST), Landstar System (LSTR), Rush Enterprises (RUSHA), Caesars Entertainment (CZR), Rithm Capital (RITM), Rush Street Interactive (RSI), Mirion Technologies (MIR), ExlService Holdings (EXLS), Enphase Energy (ENPH), Franklin Electric Co. (FELE), Stride (LRN), Commvault Systems (CVLT), Itron (ITRI), Asbury Automotive Group (ABG), Greif (GEF), Kadant (KAI), Renasant (RNST), Ultra Clean Holdings (UCTT), AllianceBernstein Holding (AB), Polaris (PII), Kiniksa Pharmaceuticals International (KNSA), Artisan Partners Asset Management (APAM).