S&P 500 slips 0.7% as AI spending concerns weigh on sentiment following OpenAI's missed internal targets for user growth and sales

The S&P 500 Index pulled back 0.7% from its record level by midday on Tuesday, while the Nasdaq 100 Index dropped more than 1%. Chipmakers Nvidia Corp. and Broadcom Inc. were among the biggest drags, and the Philadelphia Semiconductor Index fell more than 4% with all 30 of its components trading lower.

A report indicated that OpenAI missed internal targets for user growth and sales over several months, raising concerns internally about its ability to sustain elevated AI infrastructure spending. Stocks tied to that ecosystem, including CoreWeave Inc. and Oracle Corp., fell more than 3%, though OpenAI pushed back against the narrative.

The S&P 500 remains near record levels and is still tracking toward a strong monthly performance, suggesting the current pullback could be more of a pause than a structural shift, depending on how earnings and policy signals evolve.