Nasdaq ends higher as AI heavyweights rebound ahead of midterm results
SPY•The Nasdaq Composite rose 0.83% to 25,365.67 as chipmakers rebounded ahead of US midterm results, while the S&P 500 gained 0.35% and the Dow fell 0.40%. Apple slipped after warning that rising memory-chip costs would pressure its holiday-quarter gross margin.
1. Nasdaq advances
The Nasdaq ended higher on Tuesday as AI heavyweights rebounded ahead of US midterm results. Preliminary data showed the Nasdaq Composite gained 201.31 points, or 0.83%, to 25,365.67; the S&P 500 added 26.65 points, or 0.35%, to 7,568.05; and the Dow Jones Industrial Average fell 206 points, or 0.40%, to 51,782.29.
2. Tech shares diverge
Apple fell after warning that rising memory-chip costs would pressure its holiday-quarter gross margin. Micron Technology and Nvidia rose, the broader Philadelphia chips index jumped, and AMD gained ahead of its quarterly report. Microsoft and Amazon also moved higher, while Palantir shares dipped despite forecasting fourth-quarter revenue above estimates after beating third-quarter expectations.
3. Election in focus
Investors were watching the midterm results for potential implications for fiscal policy, regulation, taxation and government spending. The Nasdaq 100 had ended Monday more than 10% below its October 6 record close, confirming a correction, while the S&P 500 remained about 3% below its record close.
