S&P 500, Nasdaq rise as tech stocks gain ahead of midterm results
SPY•The S&P 500 rose 0.40% and the Nasdaq gained 0.79% as technology shares advanced ahead of US midterm results, while the Dow fell 0.45%. Apple slid 2.2% after warning rising memory-chip costs would pressure its holiday-quarter gross margin.
1. Indexes diverge
The S&P 500 and Nasdaq rose on Tuesday as technology stocks recovered, while the Dow declined. At 11:50 a.m. ET, the S&P 500 was up 0.40% at 7,571.81, the Nasdaq Composite gained 0.79% to 25,361.31 and the Dow fell 0.45% to 51,751.68.
2. Technology shares mixed
Apple fell 2.2% after warning that rising memory-chip costs would pressure its holiday-quarter gross margin. Nvidia gained 3%, the Philadelphia chip index rose 3% and AMD climbed 5.1% ahead of its quarterly results. Software stocks weakened after earnings, with Gartner down 13.2% and US-listed shares of Thomson Reuters and Shopify each sliding around 7%.
3. Election in focus
Investors awaited midterm results, with polls and nonpartisan analysts favoring Democrats to take the House while control of the Senate remained uncertain. The Nasdaq-100 had closed more than 10% below its record closing high on Monday, entering a correction as investors weighed Big Tech's AI spending and evidence of returns. Falling oil prices also supported shares, with Brent crude down more than 1%.
