Live Nasdaq Composite: OpenAI IPO Delay Fears Send Markets Out on Sour Note

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U.S. Trade Deficit Grows

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The U.S. goods trade deficit widened sharply in May, hitting $105.8 billion against a forecast of $85 billion as imports jumped 3.6% and exports fell 5.4%. Catalysts were a combination of weakening external demand at a time when the domestic economy is already navigating elevated inflation and rising rate uncertainty. On the supply side, wholesale inventories rose a modest 0.3%, coming in below forecasts, while retail inventories edged up 0.6%, slightly ahead of expectations.

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The Nasdaq Composite is winding up the week under fresh pressure, with Nasdaq 100 futures sliding 1.3%. A report that OpenAI might delay its IPO until next year rattled an already fragile AI trade. S&P 500 futures are off 0.5% and Dow futures are shedding 94 points, or 0.2%, as concerns over the sustainability of AI infrastructure spending move back to the forefront of investor thinking. Over the past five trading sessions, the Nasdaq Composite is currently down about 5.2%.

The OpenAI news, reported by the New York Times, points to SpaceX’s underwhelming post-IPO performance and broader volatility in AI-related shares as factors behind the potential delay. The ripple effects landed quickly on chip stocks, with JPMorgan traders capturing the market’s anxiety in a note to clients, flagging concerns about the “sustainability of their infrastructure spending given the delay in funding from the capital markets.”

Here’s a look at where things stand as of pre-morning trading:

Dow Jones Industrial Average: 51,703 Down 0.42%
Nasdaq Composite: 25,099 Down 1.01%
S&P 500: 7,310 Down 0.64%

Market Movers

SK Hynix and Samsung are preparing to drop a pair of landmark investment announcements that highlight just how aggressively South Korea’s memory giants are racing to meet AI-driven demand. Samsung Group is poised to unveil a $646 billion spending package spanning the next decade, according to Bloomberg, a commitment that would rank among the largest corporate investment pledges.

As expected, Apple (NASDAQ:AAPL | AAPL Price Prediction) is passing rising costs along to consumers, hiking prices on its iPad and MacBook lineups after the company said it could no longer absorb the surging cost of memory and storage chips being driven higher by the AI industry’s insatiable appetite for data center capacity.

Amazon’s (NASDAQ:AMZN) Prime Day is showing some cracks this year, with household spending down 16% according to Bloomberg, a notable pullback that suggests cost-conscious consumers may be pulling back on discretionary purchases even during one of the retail calendar’s biggest promotional events.