US tech stocks rebound after AI-spending selloff; Nasdaq up 0.83%
The Guardian reports the S&P 500 rose 0.37% and the Nasdaq 0.83% on Tuesday, while the Dow fell 0.38% after Apple's margin forecast missed expectations.
What you need to know
US tech stocks recovered on Tuesday afternoon after a selloff driven by investor concerns over AI spending, The Guardian reported. The S&P 500 closed up 0.37% and the Nasdaq gained 0.83%, while the Dow fell 0.38% after Apple's weaker-than-expected margin forecast.
- The S&P 500 closed up 0.37% and the Nasdaq rose 0.83% on Tuesday, per The Guardian.
- The Dow dropped 0.38% after Apple shares fell 1.9% on a worse-than-expected margin forecast.
- The Nasdaq ended Monday in correction territory, 10% below its 6 October record close.
- Brent crude fell to $103 a barrel from $117 at the end of October.
- Nvidia gained 2.3% after declining over four sessions.
Indexes diverge as Apple weighs on the Dow
US tech stocks recovered on Tuesday afternoon following a selloff tied to investor worries about AI spending, The Guardian reported. The S&P 500 closed up 0.37% and the tech-heavy Nasdaq added 0.83%, while the Dow slipped 0.38%.
The Dow's decline followed a 1.9% drop in Apple's share price after the company issued a margin forecast that fell short of expectations, which The Guardian attributed to higher memory chip costs. Nvidia rose 2.3% after falling over four sessions, and chipmakers Advanced Micro Devices, Broadcom and Micron Technology also gained.
Correction territory and oil prices
Tuesday ended a brief selloff of AI and tech stocks that began the prior week. The Nasdaq recorded its largest monthly decline since March 2025 in October and ended Monday in correction territory, 10% below its 6 October record close, according to The Guardian.
Small declines in oil prices also eased investors amid potential new negotiations with Iran and Russia. Brent crude dropped to $103 a barrel on Tuesday from $117 at the end of October.
Midterms and the year to date
Tuesday's midterm elections did not appear to have a large impact on Wall Street, The Guardian reported, though investors predicted Democrats would win at least a House majority and possibly Senate seats, which could lead to more AI regulation. The S&P 500 is up 10% for the year so far, with the Nasdaq and Dow up 9% and 7%.
How did the major US indexes perform on Tuesday?
The S&P 500 rose 0.37% and the Nasdaq gained 0.83%, while the Dow fell 0.38% after Apple's margin forecast missed expectations, according to The Guardian.
Sources & context
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