US stocks: Nasdaq ends higher as AI heavyweights rebound ahead of midterm results
The three major indices closed mixed for the day
The Nasdaq index concluded the trading day on a higher note on Tuesday, November 3, as AI-focused companies rebounded ahead of the upcoming US midterm election results. Meanwhile, Apple experienced a decline after the tech giant joined the list of major tech companies whose quarterly results did not satisfy investors. Apple's stock dropped by 1.9% due to its warning that the cost of memory chips would persistently rise, impacting its holiday-quarter gross margin.
Conversely, memory-chip maker Micron Technology experienced a 2.6% increase, and Nvidia gained 2.3% after previously falling over the past four sessions. The broader Philadelphia chips index also increased, while AMD rose ahead of its quarterly report due after the market closed. Jay Hatfield, CEO of Infrastructure Capital Management, noted that investors are rotating from safe tech like Apple to more risky tech, specifically chipmakers, in a higher-risk, Nasdaq-driven market.
The Nasdaq 100 ended more than 10% below its October 6 record-high close on Monday, signaling the onset of a correction in the tech-heavy index. Concerns arose as investors questioned whether substantial investments in AI infrastructure were outpacing near-term cash generation. Shares of Amazon and Alphabet suffered significant declines last week following their quarterly results, which exacerbated investors' apprehensions about the costs associated with aggressive AI spending.
The S&P 500 experienced a decline of approximately 3% from its record-high close on October 6, yet it remains up over 10% for the year 2026. Oil prices softened as investors deliberated on the prospects of resolving the conflicts in Ukraine and Iran while also considering the potential risks of additional supply disruptions resulting from recent attacks in both conflicts.
Iran and the United States remain distant from reaching an agreement to end their war, according to a senior Iranian official speaking to Reuters.
The S&P 500 closed the session at 7,568.92 points, up 0.36%, while the Nasdaq climbed 0.83% to 25,372.01 points, and the Dow Jones Industrial Average dropped 0.38% to 51,787.04 points. Six out of the 11 S&P 500 sector indexes experienced declines, driven down by consumer staples, which dropped 1.76%, followed by a 1.75% loss in materials.
Palantir Technologies, an AI-powered analytics software provider, projected revenue above estimates for the last three months of the year after surpassing third-quarter expectations, yet its shares experienced a decline. In the lead-up to the midterm elections on Tuesday, where Americans will vote on the first two years of President Donald Trump's second term, markets will evaluate potential implications for fiscal policy, regulation, taxation, and government spending.
Ken Mahoney, CEO of Mahoney Asset Management, stated that these elections could help alleviate a major market overhang, as the anticipated volatility event has been anticipated for some time. Morgan Stanley analysts indicated in a recent note that the US market correction initiated in June is nearing its "final innings." Gartner witnessed a 13.2% decrease, while US-listed shares of Thomson Reuters and Shopify fell 9.9% and 8.7%, respectively, after all three entities reported quarterly results.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
