Nasdaq rallies as AI heavyweights rebound ahead of midterm results
SPY•The Nasdaq gained 1.06% as chipmakers and other AI heavyweights rebounded ahead of US midterm results, while the S&P 500 rose 0.59% and the Dow fell 0.24%. Apple slipped 1.8% after warning that rising memory-chip costs would pressure its holiday-quarter gross margin.
1. Tech stocks rebound
The Nasdaq rallied on Tuesday as chipmakers and other AI heavyweights recovered, while Apple fell after warning that rising memory-chip costs would pressure its holiday-quarter gross margin. Micron rose 2.1%, Nvidia gained 3% and AMD advanced 5.5% ahead of its quarterly earnings; Microsoft and Amazon each added about 2%.
2. Index performance
The S&P 500 rose 0.59% to 7,585.95 and the Nasdaq gained 1.06% to 25,431.03, while the Dow fell 0.24% to 51,859.84. The Philadelphia semiconductor index jumped almost 3%. The S&P 500 remained about 3% below its October 6 record close, while the Nasdaq-100 had confirmed a correction after ending Monday more than 10% below its record.
3. Election in focus
Investors were watching US midterm results for potential implications for fiscal policy, regulation, taxation and government spending. Oil prices fell about 2% to a three-week low as investors weighed diplomatic talks against concerns about supply disruptions.
