On Tuesday, May 2, 2023, major U.S. stock indexes closed lower: the S&P 500 fell by 0.49%, the Dow Jones Industrial Average decreased by 0.05%, and the Nasdaq 100 declined by 1.01%. Concerns over artificial intelligence investments were heightened after OpenAI reportedly missed user and revenue targets, which impacted shares of key tech partners such as Nvidia and Oracle. Notably, Coca-Cola saw a rise of over 3% after reporting Q1 net revenue of $12.5 billion, exceeding estimates of $12.25 billion.
Additionally, the Conference Board’s consumer confidence index unexpectedly increased to a four-month high of 92.8, with a rise in the Richmond Fed manufacturing survey also noted. Meanwhile, WTI crude oil prices surged over 3% due to ongoing U.S.-Iran tensions, pushing inflation expectations and bond yields higher; the 10-year Treasury note yield rose to a three-week high of 4.38%. The market is not anticipating a Federal Reserve interest rate hike in the ongoing two-day FOMC meeting.
In the wake of these developments, mining stocks and AI-related companies experienced declines, notably with ARM Holdings falling more than 7%. Gold and silver prices also dipped, leading to losses for major mining firms. In contrast, shares of Centene Corporation increased by over 13%, driven by a strong Q1 revenue report of nearly $50 billion, surpassing the consensus forecast of $47.41 billion.
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