The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

US stock futures traded mixed on Tuesday as OpenAI (OPAI.PVT) doubts weighed on tech stocks, while markets waited for the US response to Iran’s olive branch.

Nasdaq 100 (NQ=F) futures sank 0.9%, and those on the S&P 500 (ES=F) pulled back 0.4% on the heels of Monday’s record-high closes. But contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, rose 0.3%.

OpenAI has fallen short of its own targets for sales and users ahead of its highly anticipated IPO, The Wall Street Journal reported. Shares of partners such as Oracle (ORCL) slumped in premarket amid revived concerns about how long the AI spending boom will last.

Investors are now on high alert for clues to AI plans as the “Magnificent Seven” tech megacaps report quarterly results this week. Alphabet (GOOG), Amazon (AMZN), Meta (META), and Microsoft (MSFT) are on Wednesday’s docket, with Apple (AAPL) following the next day.

Meanwhile, Wall Street is watching for progress on peace talks, as the US-Iran standoff keeps Strait of Hormuz traffic at a standstill. President Trump will address Iran’s proposed interim deal to lift the blockade soon, the White House said, though Trump is reportedly not happy with the terms.

Also in focus, the Federal Reserve begins its two-day meeting on Tuesday. Policymakers are expected to hold rates steady in their decision on Wednesday, and investors will listen out for Fed Chair Jerome Powell’s comments as his term draws to a close.

Bloomberg reports:

Shares in OpenAI (OPAI.PVT) partners such as SoftBank (SFTBY, 9984.T) and Oracle (ORCL) are falling after the Wall Street Journal reported that the AI startup recently failed to meet targets for sales and new users, reviving worries about spending ahead of tech earnings.

… While OpenAI has struck deals with dozens of firms, markets tend to focus on a smaller subset of major partners including Nvidia (NVDA), SoftBank, Oracle, Microsoft (MSFT), Coreweave (CRWV), and AMD (AMD) as investment proxies for the creator of ChatGPT.

Investors are on high alert for evidence that tech companies are staying committed to previously-announced plans for huge capital expenditure to build out AI infrastructure.

“That’s what the market needs to see to keep the AI narrative intact,” said Amanda Lyons, head of research at Energy Group Capital. “The nuance is that it’s a narrow path: any hint of slowing spend would be taken negatively for the ecosystem, but a sharp step-up would likely raise questions around returns and sustainability.”

Read more here.

Spotify (SPOT) stock tanked 11% after its second quarter operating income guidance missed the mark.

For Q2, Spotify guided for an operating income of 630 million euros ($736 million), below estimates of 675 million euros ($789 million). In the first quarter, operating income was 715 million euros, with higher costs driven by marketing and cloud and AI spend.

For the first quarter, Spotify beat estimates on the top and bottom lines. Revenue grew 8% year over year to 4.53 billion euros ($5.3 billion), slightly ahead of estimates of 4.52 billion euros. Earnings per share of 3.45 euros beat the estimate of 2.95 euros.

The company reported 761 million monthly active users, slightly ahead of its guidance for 759 million users, while the 293 million premium users were in line with guidance.

General Motors (GM) is expected to report quarterly results Tuesday morning that will reflect a mixed environment for the automaker, with tariffs, consumer fears, and a weaker electric vehicle business all top of mind for investors.

Yahoo Finance’s Pras Subramanian sets out what’s in play for the Big Three automaker.

Analysts expect GM to post first quarter revenue of $43.68 billion, down slightly from the $44 billion reported a year ago. GM is expected to report Q1 adjusted earnings per share of $2.62.

… Earlier this month, GM said Q1 US sales fell 9.7% from a year ago to 626,429 vehicles, though the automaker held onto its US sales crown thanks to a strong March, which helped claw back ground lost during a winter-storm-disrupted January and February.

GM said that year-over-year comparisons were skewed by an exceptionally strong Q1 last year, before President Trump’s tariffs went into effect on April 1.

Read more here.

Reuters reports:

OpenAI has fallen short of its goals for new users and revenue ‌in recent months, sparking concern among some company ‌leaders over whether it can support its extensive data-center spending, the ​Wall Street Journal reported on Monday, citing people familiar with the matter.

• CFO Sarah Friar has expressed concerns to other company leaders ‌that the ChatGPT ⁠creator might not be able to pay for future computing contracts if revenue doesn’t ⁠grow fast enough, according to the report.

• OpenAI missed multiple monthly revenue targets earlier this year after losing ​ground to ​Anthropic in coding and ​enterprise markets, the report ‌said.

• "This is ridiculous. We are totally aligned on buying as much compute as we can and working hard on it together every day," CEO and co-founder Sam Altman and Friar said in an emailed ‌statement to Reuters.

• ChatGPT's growth slowed ​toward the end of last ​year, the WSJ ​report said, adding that OpenAI fell ‌short of an internal target ​to reach 1 ​billion weekly active users for the artificial intelligence chatbot by year-end.

• The company has also grappled ​with subscriber ‌defections, the report added.

Read more here.

Bloomberg reports:

Oil held a gain as traders weighed the next steps toward peace talks over the Iran war, with the US discussing a proposal from Tehran while the crucial Strait of Hormuz remained almost impassable.

Brent (BZ=F) crude traded near $108 a barrel after advancing 2.8% on Monday, while West Texas Intermediate (CL=F) was above $96. US President Donald Trump convened a meeting to discuss the proposal, but maintained red lines on any deal to end the war, including preventing Tehran from obtaining a nuclear weapon.

A ceasefire has broadly held since early April, but a blockade of the Strait of Hormuz by Iran and the US has reduced daily transits of the waterway to near zero. The closure has choked off flows of crude, natural gas and oil products, driving up energy prices and raising concerns about an inflation crisis.

Read more here.