By Noël Randewich
Nov 3 (Reuters) – The Nasdaq ended higher on Tuesday as AI heavyweights rebounded ahead of the U.S. midterm election results, while Apple fell after the iPhone maker joined the list of big tech companies whose quarterly results failed to impress investors.
Apple fell 1.9% after warning that the cost of memory chips would continue to rise, putting pressure on its holiday quarter gross margin.
Memory chip maker Micron Technology gained 2.6%, while Nvidia rose 2.3% after falling over the past four sessions.
The broader Philadelphia chip index jumped, while AMD rose ahead of its expected quarterly report after the bell.
Microsoft and Amazon each grew by more than 2%.
“This is a transition from safe technology, like Apple, to riskier technology, like chipmakers,” said Jay Hatfield, managing director at Infrastructure Capital Management. “Clearly this is a dip buy in a higher risk, Nasdaq-led market.”
The Nasdaq 100 ended Monday down more than 10% from its record closing level on Oct. 6, confirming that the tech-heavy index has entered a correction as investors fear that massive investments in AI infrastructure could outpace cash generation in the near term.
Shares of Amazon and Alphabet fell sharply last week after their quarterly results reinforced investors’ concerns about the cost of heavy spending on AI.
The S&P 500 is down about 3% from its record close on October 6, and it remains up more than 10% in 2026.
Oil prices fell as investors weighed negotiations to end the wars in Ukraine and Iran with concerns about further supply disruptions from recent attacks in both conflicts. Iran and the United States are still far from an agreement to end their war, a senior Iranian official told Reuters.
The S&P 500 rose 0.36% to end the session at 7,568.92 points.
The Nasdaq gained 0.83% to 25,372.01 points, while the Dow Jones Industrial Average fell 0.38% to 51,787.04 points.
Six of the 11 S&P 500 sector indexes fell, led by consumer staples, down 1.76%, followed by a 1.75% loss in materials.
AI-powered analytics software provider Palantir Technologies is forecasting better-than-estimate revenue for the final three months of the year after beating expectations in the third quarter. Its shares fell.
MID-TERM RESULTS ON POST
American voters will deliver their verdict on the first two years of President Donald Trump’s second term in Tuesday’s midterm elections, with polls and nonpartisan analysts favoring Democrats to wrest the House from Republicans while control of the Senate “remains uncertain.”
“Markets will assess the potential implications on fiscal policy, regulation, taxation and government spending. It would be good to put this behind us as this is a volatility event that has been expected for some time,” said Ken Mahoney, CEO of Mahoney Asset Management.
Gn bussni
