Quick overview

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Investor sentiment deteriorated amid growing doubts over the sustainability of the artificial intelligence boom and escalating tensions in the Middle East, during a pivotal week for interest-rate decisions and corporate earnings.

U.S. stocks closed mostly lower on Tuesday, April 28, as artificial intelligence-related shares came under pressure following renewed concerns surrounding OpenAI, one of the sector’s leading players.

At the same time, the ongoing U.S.-Iran conflict continued to fuel uncertainty among investors, with markets still lacking clarity on how the situation might ultimately be resolved.

Against this backdrop, the DJIA slipped 0.06% to 49,136.15 points, while the S&P 500 fell 0.48% to 7,139.24. The tech-heavy NASDAQ Composite dropped 0.90% to 24,663.80.

Trump Says Iran Is in a “State of Collapse”

Regarding tensions in the Middle East, President Donald Trump said Tuesday that Iran had informed the United States it was in a “state of collapse.”

“They want us to ‘open the Strait of Hormuz’ as soon as possible while they try to resolve their leadership situation—which I believe they will,” Trump wrote on social media.

The comments followed reports suggesting Trump was dissatisfied with an Iranian proposal that would reopen the Strait of Hormuz and de-escalate the conflict while postponing negotiations over Tehran’s nuclear ambitions to a later stage.

CNN reported that mediators in Pakistan were expecting a revised proposal from Iran in the coming days.

Trump has repeatedly stated that eliminating Iran’s nuclear capabilities—particularly preventing access to nuclear weapons—remains a key objective behind the joint U.S.-Israeli offensive launched in late February.

According to Reuters, the president was frustrated by the proposal’s lack of immediate commitments regarding Tehran’s nuclear program.

Hopes for renewed peace negotiations weakened further over the weekend after Trump canceled plans to send negotiators to Pakistan for another round of talks.

Meanwhile, the Strait of Hormuz remains largely closed to maritime traffic, intensifying fears of a global energy crisis that could reignite inflationary pressures and potentially force central banks to maintain higher interest rates for longer.

OpenAI Misses Key Targets

According to The Wall Street Journal, OpenAI failed to meet several internal targets for user growth and revenue, raising concerns about how the company will finance its aggressive investment plans.

The AI startup reportedly missed its goal of reaching one billion weekly active users for ChatGPT by the end of 2025. Earlier this year, it also fell short of several monthly revenue targets.

Chief Financial Officer Sarah Friar reportedly warned executives that the company could struggle to support future data-center commitments if revenue growth does not accelerate quickly enough.

OpenAI’s board members were also said to be scrutinizing recent data-center agreements and questioning CEO Sam Altman over efforts to secure even more computing capacity despite signs of weakening revenue momentum. The concerns come as the company prepares for a potential IPO expected later this year.

The news weighed heavily on stocks tied to OpenAI and the broader AI ecosystem:

• Oracle Corporation fell 4%
• CoreWeave dropped 6%
• Microsoft Corporation rose 1%
• NVIDIA Corporation lost 1.6%
• SoftBank Group fell 10% in Tokyo