Despite the Dow 30 being essentially flat on the session thus far (7:50am PDT), this morning's tape is predominantly red... US tech and industrials are getting hit particularly hard, down 2.7% and 1.6% respectively, while gold and the the commodity complex (save for energy) are getting hammered as well so far this morning.... On the plus side, energy, consumer staples and healthcare are catching a bid.
As noted in yesterday's and the weekend's commentaries, this week is big -- and potentially market moving -- on a number of fronts.
As for this morning's action, the following PWAI synopsis does a good job breaking it down:
Tuesday, April 28, 2026 — Morning Commentary
Markets under pressure — but not equally
Private Wealth Advisors | As of ~7:50am PDT
S&P 500
−0.7%
Nasdaq
−1.4%
Dow Jones
~flat
Why tech is under pressure
The Wall Street Journal reported overnight that OpenAI — the maker of ChatGPT — missed its own internal sales and user growth targets this year, and that its CFO has raised concerns about the company's ability to pay for its massive computing needs if revenue doesn't ramp quickly.
This matters beyond OpenAI itself. A significant portion of the technology sector's rally over the past two years has been built on the expectation that AI infrastructure spending would keep growing rapidly. When the leading AI company signals that its own business isn't growing as fast as expected, it raises questions about that entire investment thesis — and investors are pulling back from anything connected to it today. Chip stocks, data center companies, and AI-infrastructure names are all feeling it.
Tech (XLK) −2.6%Oracle −7%Semiconductors −3–6%Why industrials are also lower
Industrials are getting hit from two sides at once. First, some of the same AI-infrastructure anxiety is spreading into power and data center equipment names — companies that supply the hardware, cooling systems, and grid infrastructure for AI buildouts.
Second, several manufacturers have started pulling their forward guidance, citing uncertainty around steel and aluminum tariffs that were updated in April. When companies can't tell investors what next year looks like, markets tend to reprice the whole sector lower.
Industrials (XLI) −1.6%Why gold and commodities are under pressure
This one is counterintuitive, but important. Gold is down roughly 2% today — not because the world is suddenly safer, but because of how the Iran conflict is affecting inflation expectations.
With oil staying elevated and the Strait of Hormuz still largely closed, markets are pricing in the possibility that inflation stays higher for longer — which in turn means the Federal Reserve may keep interest rates elevated. Higher rates make gold less attractive as an investment (it pays no income), so even as geopolitical tensions remain high, the rate expectations channel is creating a headwind for bullion.
Iran has delivered a new proposal through Pakistani mediators, offering to reopen the Strait of Hormuz in exchange for a lifting of the U.S. blockade. Washington is cautious and is expected to respond with counteroffers. Iran's nuclear program remains the main sticking point. This is movement, not resolution.
Gold (GLD) −2.1%Materials (XME) −3.3%What's working
Energy continues to benefit from elevated oil prices — WTI is approaching $110/barrel after the UAE announced it will leave OPEC effective May 1, adding a new layer of supply uncertainty. Consumer staples and healthcare are catching a bid as investors rotate toward businesses with steady, recession-resistant earnings. This is classic defensive behavior in an uncertain tape.
Energy (XLE) +1.7%Staples (XLP) +1.3%Healthcare (XLV) +0.7%What to watch this week
Wednesday is the biggest single day of the earnings season — Alphabet, Amazon, Meta, and Microsoft all report after the close, and the Federal Reserve delivers its interest rate decision. Chair Powell's comments will be closely watched; this may be his final meeting leading the Fed. We'll have a full recap Wednesday evening.
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