S&P 500 drops 0.58% to 7,673.94 as OpenAI's GPT-6 Astra fuels software sector fears
US stocks fell Tuesday, led by a sharp decline in software companies following the launch of OpenAI's new AI model.
U.S. stocks closed lower on Tuesday amidst renewed anxiety regarding artificial intelligence threats to software firms. The S&P 500 dropped 0.58% to end at 7,673.94, and the Nasdaq Composite fell 0.31% to 26,423.69. Software equities were significant contributors to the decline, with Salesforce, ServiceNow, and Intuit all losing value. This reaction followed OpenAI's announcement of GPT-6 Astra, which investors fear could outpace specialized software products. Jed Ellerbroek, portfolio manager at Argent Capital Management, noted that this launch reignited fears of disruption where semiconductor and data center companies thrive while software firms struggle. Intel saw a sharp rise, and Qualcomm gained after reaching a deal with Amazon for custom AI chips, illustrating capital flowing toward infrastructure providers rather than application developers. Rising oil prices and shifting expectations on Federal Reserve policy compounded the downward pressure on equities.
