Microsoft shares declined more than 1% in New York trading on Thursday after the Trump administration announced it would suspend the Permanent Labor Certification Program for several technology companies, alleging widespread abuse of the worker visa system.
Vice President JD Vance said no US company had "abused this system more than Microsoft." Labor Secretary Keith Sonderling identified other affected firms, including Cognizant Technology Solutions, Infosys, Tata, Wipro, HCL Technologies and Capgemini. Vance described the suspensions as indefinite, while Sonderling noted that multiple federal investigations into potential abuses are ongoing.
Microsoft responded that it looked forward to providing the administration with further information on its use of the H-1B visa program. The company said most of its applications from the previous fiscal year were for people already legally in the US and that it only files petitions for workers who meet the visa category's requirements. Cognizant shares reversed earlier losses to rise more than 2%, while Infosys American depositary receipts slipped less than 1% and Wipro fell 1.8%.
AI stocks retreat on OpenAI revenue report
Nvidia, Oracle, CoreWeave and other artificial intelligence companies moved lower after a Financial Times report said OpenAI's annualised revenue was roughly $50 billion at the end of September. That figure was below the $70 billion number widely reported late last month. A person familiar with the matter said the earlier figure included gross revenue from OpenAI's partners, allowing investors to make a more direct comparison with Anthropic.
OpenAI also told investors that total run-rate revenue grew 77% in the third quarter, while run-rate revenue from its enterprise business increased 107%, according to the person. The revenue update comes as OpenAI seeks to support its $852 billion valuation and prepares for a potential initial public offering. The company is also in early discussions with investors about a new funding round that could raise around $30 billion, although the amount could change and no term sheet has been finalised. OpenAI previously raised $122 billion in March. Chief Financial Officer Sarah Friar said last week that the company remained "very well capitalized."
Oil pulls back from session highs
Oil prices declined from their session highs Thursday after President Donald Trump said the US would not attack Iran before the November 3 midterm elections. Brent crude, which had been approaching $106 a barrel, fell to around $103.50 after the comments. West Texas Intermediate crude declined from about $93 to roughly $91.
Trump said on Truth Social that the US was engaged in "productive discussions" with Iran and that there would be no US attack on the country before the elections. The comments eased some immediate concerns about further escalation, although oil remained sharply higher on the session. WTI was still up around 3.4%, while Brent also traded 3.9% higher. Geopolitical risks remain a key factor in the oil market, with tanker attacks and lower vessel traffic through the Strait of Hormuz adding to concerns about energy supplies. Supply concerns were also heightened by offshore production cuts in the US Gulf Coast as Hurricane Isaias approached.
Gold edges higher as investors weigh Fed path and US debt
Gold prices edged higher after falling to a two-month low in the previous session, as investors assessed the Federal Reserve's uncertain interest-rate outlook alongside concerns over US debt. Spot gold rose 0.56% to $4,133.64 an ounce, while US gold futures for December delivery settled 0.36% higher at $4,155. The dollar and 10-year US Treasury yields remained elevated for a second consecutive session, limiting gains in the precious metal.
Fed policymakers were divided over the case for raising rates at their September meeting, according to minutes released Wednesday. Fed Governor Christopher Waller said Thursday that further rate hikes would likely be needed but that there was flexibility over the pace, leaving the door open to a pause in October. Markets are pricing a 17% chance of an October rate hike and an 81% probability of a December increase, according to CME's FedWatch tool.
This article is for informational purposes only and does not constitute financial advice.
