US stocks retreat from records on chip losses, geopolitical concerns

US stocks fell on Tuesday, pulling back from record highs, as semiconductor shares declined following reports of weakness in OpenAI’s business, while geopolitical tensions in the Middle East persisted.

The Dow Jones Industrial Average remained stable at 49,141 points, supported by a 3.86% rise in Coca-Cola shares to $78.35 following better-than-expected earnings.

Meanwhile, the broader S&P 500 fell 0.49%, or 35 points, to 7,138 points, while the Nasdaq Composite also edged down 0.9%, or 223 points, to 24,663 points, after both indices hit record highs in the previous session.

In Europe, the STOXX Europe 600 inched down 0.37% to 606 points.

The FTSE 100 edged up 0.11% to 10,332 points, while Germany’s DAX shed 0.27% to 24,018 points, and France’s CAC 40 retreated 0.46% to 8,104 points.

In Japan, the Nikkei 225 lost 1% to 59,917 points, while the broader TOPIX added 0.99% to close at 3,772 points.

In oil markets, June futures for Brent crude oil rose 2.80%, or $3.03, to $111.26 per barrel.

US June futures for WTI crude oil gained 3.69%, or $3.56, to $99.93 per barrel.

As for gold, June futures for the precious metal shed 1.82%, or $85.30, to $4,608.40 per ounce.

A report indicated that OpenAI is facing financial challenges that could hinder its future growth, weighing on shares of related semiconductor companies, as diplomatic efforts remained stalled after the US rejected an Iranian peace proposal.