US stocks showed volatility on Friday as concerns over a potential delay to OpenAI’s IPO added to the headwinds pressuring markets this week.
The tech-heavy Nasdaq Composite lingered near break-even, while the S&P 500 edged up 0.1% following both indexes closing lower for a fourth consecutive day. The Dow Jones Industrial Average, which has fewer technology holdings, also rose 0.1% after earlier losses.
Worries are mounting that skyrocketing memory and storage component costs could impact device manufacturers, as Apple raised MacBook and iPad prices. Micron, a memory chipmaker, reported strong earnings signaling ongoing supply pressures.
A New York Times report suggesting OpenAI may delay its IPO until 2027 weighed on tech sentiment. The AI sector faced additional pressure from growing bets on a Federal Reserve interest rate hike, reinforced by a robust May reading of the PCE inflation index.
Oil prices dropped around 3% as tanker traffic lingered in the Strait of Hormuz despite a recent attack on a container ship. Brent crude futures fell to about $73 a barrel, while WTI crude traded below $70. Though the US and Iran agreed on a 60-day ceasefire, reports of disruptions in the strategic waterway persisted amid potential Iranian transit fees.