US stocks open lower as Dow, S&P 500, and NASDAQ all slide into the red
A cocktail of AI anxiety, geopolitical tension, and mixed earnings is keeping investors on their heels as all three major indices decline at the open.
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Add us on Google by Editorial Team May. 11, 2026All three major US stock indices opened in negative territory, with the Dow dropping 0.12%, the S&P 500 falling 0.16%, and the Nasdaq leading losses with a 0.44% decline.
The declines extend what has been a rough stretch for equities. Thursday’s session saw meaningfully steeper losses, with the S&P 500 closing at 6,832.76, down 1.6%, the Dow finishing at 49,451.98 with a 1.3% drop, and the Nasdaq shedding a full 2% to land at 22,597.15.
What’s dragging markets down
Markets are processing a three-headed monster of concerns: questions about AI profitability, geopolitical friction in the Middle East, and a decidedly mixed bag of quarterly earnings from the tech sector.
Cisco shares tumbled 12.3% on profitability concerns. AppLovin, the mobile advertising and gaming company that had been riding the AI wave, plummeted 19.7%.
Geopolitical risk added another layer of unease. Tensions in the Middle East, specifically around the Strait of Hormuz, one of the world’s most critical oil shipping chokepoints, pushed markets to intraday lows during Thursday’s session. Stocks managed a partial rebound after President Trump announced that the US Navy would provide escorts for tankers navigating the strait, but the relief was short-lived.
At the sector level, consumer staples, consumer discretionary, health care, materials, and utilities all led losses. Energy stocks bucked the trend with modest gains.
The bigger picture on AI and earnings
Capital Economics has maintained an optimistic outlook for the S&P 500, arguing that AI advancements will ultimately drive a prosperous year for the index.
What this means for investors
Futures had been signaling weakness, with Dow futures dropping between 0.1% and 1.45%, S&P 500 futures declining as much as 2%, and Nasdaq futures reflecting drops of up to 1.91% during pre-market sessions in recent days.
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