Tech stocks rebound as OpenAI’s revenue outlook eases AI fears. Higher bond yields limit the recovery.
AI fears ease. Bloomberg reported that OpenAI expects annualized revenue to reach or exceed $70 billion by year-end. That eased fears about its ability to fund AI infrastructure after yesterday’s revenue scare. Tech shares recovered, although the semiconductor index remained lower.
Bond yields rise. The 10-year Treasury yield climbed to 5.24%, keeping borrowing costs high and making expensive growth stocks less attractive.
Consumers lose confidence. The University of Michigan’s preliminary sentiment reading fell to 46.3 from 48.1, raising concerns about spending and tempering the recovery.