The three major averages finished in negative territory on Tuesday.

The S&P 500 dropped 0.49% to 7,138.80, while the Nasdaq Composite declined 0.9% to 24,663.80. The Dow Jones Industrial Average shed 25.86 points, or 0.05%, to 49,141.93.

— Sean Conlon

Small-cap stocks pulled back on Tuesday as investors took profit following a big rally over recent weeks.

The Russell 2000 fell 1.2% in the session. By comparison, the broad S&P 500 lost around 0.5%.

The Russell 2000 has surged more than 10% in April, on track for its best month since 2024. April's rally propelled the index up 11% for 2026.

— Alex Harring

Oracle defended OpenAI's growth trajectory, saying it's seeing firsthand how quickly adoption of OpenAI's technology is accelerating.

"We're incredibly excited about our partnership with OpenAI and remain focused on building and delivering the capacity they need to support rapidly growing demand," an Oracle spokesperson said. "OpenAI's new 5.5 model is a significant step forward, and we expect continued momentum as access to their technology expands across cloud providers."

The comment came after a Wall Street Journal report that OpenAI has fallen short of internal growth expectations, raising fresh questions about whether the pace of spending across the sector is sustainable.

Oracle, which has a $300 billion, five-year partnership to supply computing power to OpenAI for AI operations, dropped more than 3% Tuesday but off the lows of the day.

— Seema Mody and Yun Li

The software sell-off is altering Citi's outlook on Palantir's stock.

Citi reiterated its buy rating on the stock in a Monday note, but cut its price target to $210 from $260. That implies a nearly 47% gain from Monday's close. Analyst Tyler Radke said that the company's momentum appears strong, with new and renewing contracts with both the government and private sector.

However, the price target cut is due to multiple compression within the software sector, which has come as the group has sold off over concerns about artificial intelligence disrupting companies' business models. But Radke reiterated it sees Palantir as one of the top AI beneficiaries.

"Bookings / RDV," remaining deal value, "growth could see another triple-digit growth, which will drive more upside revision to longer-term numbers," Radke wrote. "We raise our LT growth trajectory by 3pts, with FY27 top line of 52% YoY."

— Davis Giangiulio

Here's how much the Magnificent Seven companies have rallied this month ahead of earnings:

• Apple is higher by more than 6%
• Alphabet is higher by more than 21%
• Amazon is higher by more than 24%
• Meta Platforms is higher by more than 16%
• Microsoft is higher by more than 15%

Alphabet, Amazon, Meta Platforms and Microsoft report results Wednesday, while Apple's is scheduled for Thursday.

— Sarah Min

The average price for a gallon of regular gas has hit $4.176, the highest since August 2, 2022, according to AAA.

Retail pump prices are reacting to gains in the cost of a barrel of West Texas Intermediate crude oil, which briefly topped $100 on Tuesday before pulling back. Brent crude futures, the global benchmark for oil prices, got as high as $112.70 a barrel, the highest since March 31.

Brent prices rallied early in the day as traders assessed the latest proposals to re-open the vital Strait of Hormuz at the mouth of the Persian Gulf, through which 20% of the world's crude oil flowed before the outbreak of the Iran war.

— Nick Wells and Scott Schnipper

On Tuesday, 12 stocks in the S&P 500 reached new 52-week lows.

Tickers that hit this milestone included:

• Charter Communications trading at lows not seen since February 2015
• Best Buy trading at lows not seen since April 2025
• Tractor Supply trading at lows not seen since May 2022
• Clorox trading at lows not seen since October 2014
• Brown & Brown trading at lows not seen since June 2023
• Boston Scientific trading at lows not seen since January 2024
• Insulet trading at lows not seen since August 2024
• Zimmer Biomet trading at lows not seen since March 2020
• Pentair trading at lows not seen since April 2025
• Mosaic trading at levels not seen since April 2025
• Alexandria Real Estate Equities trading at lows not seen since August 2009
• Healthpeak Properties trading at lows not seen since November 2023

Just three stocks in the index traded at new 52-week highs:

• Franklin Resources trading at levels not seen since January 2024
• Linde trading at its all-time highs back to Praxair's spin-off from Union Carbide in June 1992
• Nucor trading at all-time highs back through our history to 1972

— Lisa Kailai Han and Christopher Hayes

Semiconductors dropped Tuesday, taking a pause from its recent rally.

The VanEck Semiconductor ETF (SMH) was down 3.9% in midday trading. It's still up more than 26% in April, and 35% year to date.

— Sarah Min

Industrials stocks were headed for their worst day going back to March 30, which also marks the low for the S&P 500 since the start of the Iran war.

The S&P 500 Industrials sector is down 1.5% in midday trading, as higher pricing pressures weigh on demand.

Pentair, the biggest laggard in the sector, was down more than 8% after issuing lackluster second quarter guidance.

— Sarah Min and Fred Imbert

The S&P 500 and Nasdaq Composite declined on Tuesday morning.

The broad market index declined 0.6%, while the tech-heavy Nasdaq lost 1.2%. The Dow Jones Industrial Average advanced 146 points, or 0.3%.

— Sean Conlon

The United Arab Emirates announced Tuesday that it will exit OPEC on May 1.

"This decision follows a comprehensive review of the UAE's production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market's pressing needs," the UAE energy ministry said in a statement.

The UAE was the third-largest producer in OPEC in February, behind Saudi Arabia and Iraq. It joined OPEC in 1967, seven years after the organization was established. Read more.

— Spencer Kimball and Emma Graham

Apple earnings should be strong as the company continues to roll out personal devices that are popular among consumers despite an ongoing memory supply crunch, according to UBS.

The investment bank raised its price target on shares to $287 from $280, implying 7.2% from Monday's close. The move comes just two days before Apple reports fiscal second-quarter earnings.

"Supply chain strength and sustained demand/share gains for the iPhone 17 series should lift iPhone rev up ~20% YoY," analyst David Vogt said Monday in a note to clients.

CNBC Pro subscribers can read more here.

— Liz Napolitano

Shares of companies tied to artificial intelligence infrastructure tumbled in early trading Tuesday after a report that OpenAI has fallen short of internal growth expectations, raising fresh questions about whether the pace of spending across the sector is sustainable.

Oracle dropped about 7.5% in premarket trading Tuesday. Oracle has a $300 billion, five-year partnership to supply computing power to OpenAI for AI operations.

Chipmakers including Nvidia, Broadcom and Advanced Micro Devices declined between roughly 2% and 5%.

Qualcomm pulled back 3.5%. The stock had gotten a slight boost Monday on reports it is working with OpenAI on smartphone chips tied to the firm's hardware ambitions. Leveraged neocloud stock CoreWeave dropped 7%.

In Asia, SoftBank Group, one of OpenAI's largest investors, sank about 10%. Read more.

— Yun Li

Check out the companies making headlines before the bell:

• Oracle — The software giant dropped more than 5% after The Wall Street Journal, citing people familiar, reported OpenAI recently missed its own targets for new users and revenue, raising concerns the company may not be able to support its massive AI spending. A number of other chip stocks declined on the news, including Nvidia and Advanced Micro Devices that slid more than 1% and 3%, respectively.
• General Motors — Shares popped more than 5% after the automaker raised its 2026 guidance and blew through first-quarter earnings expectations, with adjusted earnings of $3.70 per share, above the $2.62 expected by analysts polled by LSEG.
• Coca-Cola — Shares of the beverage company gained 2% after Coca-Cola reported quarterly earnings and revenue that topped analysts' expectations, with earnings of 86 cents per share, on an adjusted basis, on revenue of $12.47 billion adjusted. Analysts polled by LSEG anticipated earnings of 81 cents per share on revenue of $12.24 billion.

Read here for the full list.

— Sarah Min

UPS shares were down more than 3% after the company's latest quarterly figures and guidance failed to impress investors. The company posted adjusted earnings per share of $1.07 on revenue of $21.2 billion. Analysts polled by LSEG expected a profit of $1.02 per share on revenue of $20.99 billion.

— Fred Imbert

General Motors traded more than 4% higher after the automaker reported a Q1 earnings beat and raised its 2026 guidance. The company earned an adjusted $3.70 per share, topping an LSEG forecast of $2.62 per share. For 2026, GM sees EBITDA of $13.5 billion to $15.5 billion. That's up $500 million from a previous guidance.

— Fred Imbert

The Stoxx 600 moved into positive territory on Tuesday as investors digested a raft of earnings updates from several major European corporates.

The pan-European benchmark had risen almost 0.2% by 10:30 a.m. in London (5:30 a.m. E.T.), as bourses in London, Paris, Frankfurt and Milan all made gains.

Regional sectors were also largely positive.

Oil and gas names led with a 1.8% rise after energy prices rose again on Monday, while bank stocks advanced more than 1.1% ahead of a slew of earnings updates from regional lenders this week.

In a busy day for European corporate results, U.K. energy major BP, Swiss drugmaker Novartis, and British bank Barclays were among those publishing quarterly updates.

— Hugh Leask

Asia-Pacific closed mostly lower Tuesday as investors weighed developments in U.S.-Iran negotiations.

U.S. President Donald Trump and his national security team on Monday discussed Iran's reported offer to reopen the Strait of Hormuz, contingent on the U.S. lifting its blockade and ending the conflict, according to White House press secretary Karoline Leavitt.

Japan's Nikkei 225 declined 1.02% to close at 59,917.46 after notching a record high on Monday, while the Topix added 0.99% to 3,772.19. South Korea's Kospi rose 0.39% to 6,641.02 while the small-cap Kosdaq declined 0.86% to 1,215.58.

Japan's central bank kept its policy rate steady at 0.75% on Tuesday, while revising its inflation estimates upwards as the Iran war raises supply-side risks.

In Australia, the S&P/ASX 200 lost 0.64% to 8,710.7.

Hong Kong's Hang Seng index lost 0.48% as of its last hour of trade, while mainland China's CSI 300 declined 0.27% to 4,758.21.

— Lee Ying Shan

Japan's central bank kept its policy rate steady at 0.75% on Tuesday, while revising its inflation estimates upwards as the Iran war raises supply-side risks.

The decision to keep rates steady came in a split 6-3 vote, and was in line with Reuters-polled analysts' estimates. The dissenting members proposed to raise the policy rate to 1%, arguing that tensions in the Middle East had skewed price risks to the upside.

The Bank of Japan also cut its growth forecast for the fiscal year 2026 to 0.5% from 1%, and sharply raised its core inflation outlook to 2.8% from 1.9%. The BOJ has set its headline inflation target at 2%.

— Lim Hui Jie

Stocks reporting before Tuesday's opening bell include:

• UPS
• General Motors
• Coca-Cola
• Novartis
• Barclays
• BP
• Hilton Worldwide
• JetBlue
• Sherwin-Williams
• Airbus
• Invesco
• Spotify
• AllianceBernstein
• S&P Global

On the other hand, stocks reporting after Tuesday's closing bell include:

• Visa
• T-Mobile US
• Booking Holdings
• Robinhood
• Starbucks
• Caesars Entertainment
• CoStar
• Enphase Energy
• NXP Semiconductors
• Waste Management

— Lisa Kailai Han and Robert Hum

These are the stocks moving the most in extended-hours trading:

• LendingClub — The bank surged nearly 14% after first-quarter results topped estimates.
• Nucor — The steel manufacturer added more than 3% after posting first-quarter earnings of $3.23 per share, exceeding the $2.82 per share analysts polled by LSEG sought.
• Bed Bath & Beyond — The home goods retailer surged 28% after reporting first-quarter revenue of $247.8 million, beating the $240.1 million analysts polled by FactSet had expected.

Read the full list of stocks moving here.

— Lisa Kailai Han

Stock futures traded near flat on Monday night.

Shortly after 6 p.m. ET, futures tied to all three major averages were trading around the flatline.

— Lisa Kailai Han