US stocks closed lower on Tuesday as fresh concerns about the artificial intelligence boom weighed on technology stocks days after quarterly results from five of the sector’s most high-profile companies.

Semiconductor shares, which are up more than 40% so far this year, weigh heavily on the Nasdaq in particular. OpenAI missed internal targets for weekly users and revenue, raising concerns about the AI ​​heavyweight’s ability to support big spending on data centers, according to a Wall Street Journal report.

Oracle shares fall; The company has come under scrutiny for its reliance on OpenAI.

Chip stocks also fell, with Nvidia, AMD and Broadcom all down. Nvidia-supported CoreWeave also slid.

“(OpenAI) is giving investors more food for thought about whether growth is slowing and what that means for capital spending,” said Chuck Carlson, chief executive officer of Horizon Investment Services in Hammond, Indiana. “You’ve got major hyperscalers with results tomorrow, which probably gives investors more reason to take some chips off the table.”

First-quarter earnings season has shifted into overdrive this week, with five companies in the Magnificent Seven group of AI-related megacap firms expected to post results. On Wednesday, Alphabet, Amazon, Meta Platform and Microsoft are due to report, with Apple on deck for Thursday.

According to Raymond James, the companies on deck to report this week account for about 44% of the S&P 500’s total market capitalization.

General Motors advanced and lifted its full-year earnings forecast after the automaker beat quarterly profit estimates, boosted by a resilient U.S. car market and expected tariff refunds.

Shares of United Parcel Service fell after the package delivery company reiterated its full-year revenue target as rising fuel costs helped improve business.

Coca-Cola rose following its better-than-expected quarterly report. The beverage giant downplayed the impact of higher oil prices and raised its annual earnings target. Visa and Starbucks are due to report soon.

According to preliminary data, the S&P 500 fell 34.81 points, or 0.49%, to close at 7,139.10, while the Nasdaq Composite lost 222.37 points, or 0.89%, to 24,664.73. The Dow Jones Industrial Average fell 20.44 points, or 0.06%, to 49,147.35.

War, rising crude prices, and the Fed

The US The Federal Reserve has called for what could be Jerome Powell’s last monetary policy meeting as chairman of the central bank. While the Fed is likely to keep its key interest rate unchanged on Wednesday, the accompanying statement and Powell’s subsequent press conference will be analyzed for policymakers’ views on inflation risks related to war-related energy price increases.

“We know the Fed is effectively on hold,” said Oliver Persch, senior vice president at Wealthspire Advisors in New York. “If oil prices remain elevated, does that create an environment where energy-related inflation is no longer seen as transitory, but as something that has a much longer-term impact and could therefore force the Fed to raise rates?” US President Donald Trump is unhappy with Iran’s latest peace proposal because it will delay talks on the nuclear issue, dampening optimism that the conflict, which has roiled world markets and driven up energy prices, may be close to a resolution. In another blow to oil-exporting countries, the United Arab Emirates announced on Tuesday that it was withdrawing from OPEC.

Crude prices have risen, reigniting inflation concerns and contributing to risk-off sentiment.