U.S. stock futures moved lower as technology shares faced renewed selling pressure. Reports that OpenAI may delay its initial public offering until 2027 added to concerns surrounding the artificial intelligence sector.
Wall Street was also heading toward weekly losses after a sharp decline in major technology stocks.
U.S. Stock Futures Point to Lower Open
S&P 500 futures fell 0.55% to 7,383.75 points, while Nasdaq 100 futures dropped 1.1% to 29,383 points.
Dow Jones futures recorded a smaller decline of 0.1%, reaching 52,293 points.
The heavier losses in Nasdaq futures indicated that technology stocks could face further weakness when regular trading resumes.
OpenAI May Delay IPO Until 2027
The New York Times reported that OpenAI is considering postponing its initial public offering until 2027.
Earlier expectations suggested that the artificial intelligence company could enter the public market before the end of 2026.
According to the report, OpenAI’s advisers warned that volatile technology markets could reduce investor demand for the offering.
A delayed listing may therefore give the company more time to improve market conditions and strengthen investor confidence.
Sam Altman Reportedly Seeks $1 Trillion Valuation
OpenAI CEO Sam Altman is reportedly targeting a valuation of approximately $1 trillion for the company.
However, advisers may believe that achieving such a valuation would be difficult during a period of weakness and uncertainty across technology stocks.
Launching an IPO too early could force OpenAI to accept a lower valuation than management expects.
The possible delay has increased doubts about whether investor enthusiasm surrounding artificial intelligence can support current valuations over the longer term.
Asian Technology Stocks Fall Sharply
The OpenAI IPO report also affected technology companies in Asia with exposure to the artificial intelligence startup.
SoftBank Group, which has a significant investment in OpenAI, dropped 13% in Japanese trading.
Samsung Electronics and SK Hynix fell between 4% and 6%. Both companies have business relationships linked to OpenAI and the wider AI industry.
The steep losses in Asian technology stocks increased expectations that Wall Street could experience a similar sell-off.
End-of-quarter portfolio adjustments may have added further pressure on the sector.
Nasdaq and S&P 500 Head for Weekly Losses
The Nasdaq Composite was on course to decline approximately 4.4% for the week.
Meanwhile, the S&P 500 was heading toward a weekly loss of around 1.9%.
Technology stocks came under pressure as investors questioned the sustainability of AI spending and reacted to expectations of higher U.S. interest rates.
The Dow Jones Industrial Average was performing better, with a weekly gain of approximately 0.7%.
Investors appeared to be moving toward more defensive sectors, including healthcare and utilities, as volatility increased across the technology market.
Apple Shares Slide After Device Price Increases
Apple shares fell 6.1% after the company raised prices for several iPads and MacBooks.
The company reportedly increased prices to offset the rising cost of memory chips caused by strong demand from the artificial intelligence industry.
The move highlighted how the AI boom may benefit semiconductor producers while increasing expenses for consumer electronics companies.
Higher component costs could place pressure on profit margins or force manufacturers to pass additional costs on to customers.
Micron Surges on Strong Earnings
Micron Technology moved sharply in the opposite direction, rising nearly 16% after reporting stronger-than-expected results.
The rally supported a 3.6% increase in the Philadelphia Semiconductor Index.
Micron’s performance helped chipmakers recover some of their recent losses. However, gains in semiconductor stocks were not enough to offset weakness across the wider technology sector.
The contrasting moves suggest that chip producers may be among the clearest beneficiaries of growing AI investment.
Software companies and consumer electronics manufacturers, by comparison, may face higher costs and greater pressure on their valuations.
Strait of Hormuz Attack Raises Geopolitical Concerns
Markets also reacted to reports of another attack on a cargo vessel in the Strait of Hormuz.
The incident raised concerns about whether the fragile peace agreement between the United States and Iran would remain intact.
Oil prices recorded modest gains, although they remained near levels seen before the conflict.
Further instability in the region could increase energy prices and create additional inflation concerns for global markets.
U.S. Inflation Remains Persistent
The personal consumption expenditures price index rose as expected in May.
Core PCE inflation, which excludes volatile food and energy prices, also increased in line with forecasts.
Although the figures did not exceed expectations, they showed that underlying inflation remained well above the Federal Reserve’s annual target of 2%.
Persistent inflation may encourage the central bank to keep monetary policy restrictive.
Federal Reserve Rate Concerns Continue
Markets continued to price in the possibility that the Federal Reserve could raise interest rates at least once before the end of 2026.
The central bank adopted a hawkish tone at its latest policy meeting, reinforcing expectations that borrowing costs may remain elevated.
Higher interest rates usually place pressure on technology companies because they reduce the present value of future earnings.
Strong economic conditions could also give the Federal Reserve more flexibility to tighten monetary policy.
First-quarter U.S. gross domestic product figures were revised slightly higher, indicating that the economy remained resilient despite elevated interest rates.
Tech Stocks Face an Uncertain Outlook
The near-term outlook for technology stocks may depend on OpenAI’s IPO plans, inflation data and future Federal Reserve decisions.
Investors will also monitor AI spending, semiconductor demand and rising hardware costs.
Until uncertainty surrounding valuations and interest rates declines, the Nasdaq and other technology-focused markets may remain vulnerable to further volatility.
