Qualcomm jumps on reported OpenAI AI-chip deal as Nasdaq dips on Iran tensions and oil
U.S. stocks slipped at the open Monday as renewed tensions around the Strait of Hormuz and stalled Iran talks lifted oil prices and reset inflation expectations, keeping investors cautious at the start of a pivotal week. In the first hour of trading, the Nasdaq Composite fell 0.30%, the S&P 500 was flat to lower, and the Dow edged down slightly.
The overnight jump in crude, driven by geopolitical risk and tighter shipping conditions, put pressure on equities as traders reassessed the path for inflation and interest rates. One notable outlier was Qualcomm, which jumped 7% on reports it is partnering with OpenAI to develop AI chips for smartphones, with production targeting 2028.
The pop offered a bright spot in an otherwise subdued tech tape, though the company’s shares remain down for the year. After the opening bell, the Nasdaq Composite traded inside Friday’s range, a sign of investor indecision and potential near-term volatility. Traders were watching a possible breakout over 24854.04, while support levels included Friday’s low at 24524.37.
A pullback toward 24526.52 could attract dip buyers, and a deeper retracement zone at 23824.93 to 23582.06 was flagged as a potential value area if tested. A break below 24524.37 would confirm a new minor top; holding that level would keep the bullish case intact.
With oil and geopolitics setting the tone, market attention turns to Big Tech earnings and a Federal Reserve decision later this week—events that could either extend the rally or accelerate a pullback, depending on how growth and inflation signals land.