AI-linked stocks drive Wall Street gains as Apple shares slip

The US market saw a slight gain on Tuesday, driven by a rebound in several influential Big Tech stocks, as Apple shares slipped and other stocks showed mixed trading. The S&P 500 rose 0.5 percent, while the Dow Jones Industrial Average fell by 0.5 percent and the Nasdaq composite increased by 1 percent. Recently, the market has been unstable due to technological and artificial-intelligence stocks experiencing volatility due to concerns about their prices being too high in the AI frenzy.

Despite this, several influential AI-related stocks held their value, supporting the market. Nvidia was the top performer, rising 3.2 percent, followed by Broadcom, Advanced Micro Devices, and Micron Technology. Apple, once considered a Big Tech company less reliant on AI, felt the impact of the boom in memory chips for computers, leading to a 2 percent drop in its stock price.

Apple reported stronger-than-expected profit and revenue for the latest quarter, but rising memory chip costs are affecting its earnings. Palantir Technologies also experienced a 2.1 percent drop despite reporting better-than-expected profits. The upcoming midterm elections, while keeping financial markets somewhat unstable, typically do not have a significant impact on broad market performance based on historical data.

Wall Street speculates that a Democratic sweep of Congress could lead to more regulations on AI development, but a potential Democratic sweep is unlikely due to the persistence of President Donald Trump and the power he holds to veto. The overall expectation is that many companies will continue to deliver strong profits as the US economy remains robust, despite high inflation and elevated interest rates.

The S&P 500 reached a record high last month, and an encouraging US job market report, showing higher-than-expected job openings in September, helped push the yield on the 10-year Treasury to 4.96 percent. Oil prices fluctuated, with Brent climbing above $107 per barrel and briefly dropping below $101, before settling at $103.27.

In foreign markets, indexes were lower in Europe and mixed in Asia, with South Korea's Kospi declining 3.6 percent following losses for its two tech giants, Samsung Electronics and SK Hynix.