U.S. stocks ended mixed Tuesday as investors returned to semiconductor and artificial intelligence shares despite concerns over technology spending, disappointing corporate earnings and uncertainty surrounding the midterm elections.
By yourNEWS Media Newsroom
NEW YORK — U.S. technology stocks recovered Tuesday, Nov. 3, lifting the Nasdaq Composite and S&P 500 as investors bought shares of major artificial intelligence companies ahead of the midterm election results, while Apple declined after warning that rising memory-chip costs could weaken profit margins during the holiday shopping season.
The Nasdaq Composite advanced 0.83% to close at 25,372.01, while the S&P 500 gained 0.36% to 7,568.92. The Dow Jones Industrial Average fell 0.38% to 51,786.72, according to Tuesday’s closing market figures. Gains in semiconductor manufacturers and other technology companies helped offset declines elsewhere in the market, with more S&P 500 stocks falling than rising.
Nvidia, one of the leading beneficiaries of the artificial intelligence investment boom, climbed approximately 2.3% after four consecutive losing sessions. Memory-chip manufacturer Micron Technology gained about 2.6%, while Advanced Micro Devices advanced ahead of its quarterly earnings announcement scheduled for after Tuesday’s closing bell. The Philadelphia Semiconductor Index also rose as investors returned to chipmakers following several sessions of selling.
Microsoft and Amazon each gained more than 2%, contributing to the Nasdaq’s recovery. According to Reuters’ Election Day market report, investors increasingly favored companies tied to artificial intelligence infrastructure while reassessing the outlook for technology companies facing higher operating costs and uncertain returns on major investments.
“This is a rotation from safe tech, like Apple, into riskier tech, like chipmakers,” said Jay Hatfield, chief executive officer at Infrastructure Capital Management. “It’s clear dip-buying in a higher-risk, Nasdaq-driven market.”
Apple fell approximately 1.9% after warning that increasing memory-chip prices would pressure its gross profit margin during the important holiday quarter. The company’s outlook disappointed investors despite its quarterly financial results, adding to concerns about rising costs throughout the technology industry.
The pressure on Apple comes as global demand for memory components increases, partly because of the rapid expansion of artificial intelligence data centers. The company has increased its manufacturing purchase commitments as it seeks to secure supplies, according to a Wall Street Journal examination of Apple’s response to rising memory prices.
Tuesday’s technology rebound followed a difficult stretch for major artificial intelligence stocks. On Monday, the Nasdaq 100 closed more than 10% below its Oct. 6 record, confirming a market correction as investors questioned whether extraordinary spending on data centers, computing equipment and other AI infrastructure would generate sufficient near-term profits.
Amazon and Alphabet had declined sharply the previous week after their quarterly earnings reports intensified those concerns. Both companies have committed substantial resources to expanding artificial intelligence capacity, raising questions about how quickly their investments will translate into stronger earnings and cash flow.
The broader S&P 500 remained approximately 3% below its Oct. 6 record despite Tuesday’s advance. The benchmark index was still more than 10% higher for 2026, reflecting gains accumulated earlier in the year before the latest technology-led pullback.
Meanwhile, Palantir Technologies declined despite reporting third-quarter results above Wall Street expectations and forecasting stronger-than-anticipated revenue for the final three months of the year. The artificial intelligence analytics company joined several technology businesses whose shares weakened despite favorable earnings figures, underscoring investors’ heightened expectations for companies associated with the AI industry.
Other companies also faced selling pressure following earnings announcements. Gartner, Thomson Reuters and Shopify declined after their financial results or outlooks disappointed investors, while stronger performances elsewhere helped prevent a broader market retreat.
The midterm elections added another source of uncertainty, with investors awaiting results that will determine control of Congress during the final two years of President Donald Trump’s term. Changes in congressional leadership could affect tax policy, federal spending, financial regulation and the administration’s legislative priorities, including policies affecting major technology companies.
Trading also reflected developments in international energy markets. Oil prices eased as investors evaluated diplomatic efforts involving the wars in Ukraine and Iran against the possibility of further disruptions to global supplies. A senior Iranian official told Reuters that Washington and Tehran remained far apart on an agreement to end their conflict, leaving uncertainty about the outlook for energy production and transportation.
Lower energy prices provided some support for equities by potentially reducing inflationary pressure and business costs. However, the market’s overall performance remained uneven, with technology shares accounting for much of the advance while several other sectors finished lower.
The divergent performance of Apple and semiconductor manufacturers illustrated a continuing shift in investor sentiment. Companies supplying the hardware needed for artificial intelligence expansion attracted renewed interest, while businesses exposed to rising component costs or substantial capital expenditures faced closer scrutiny.
Tuesday’s gains offered a partial recovery from the recent technology selloff, but the Nasdaq 100 remained in correction territory. Investors now face another round of corporate earnings alongside the midterm election results, both of which could influence expectations for technology spending, economic growth and financial markets through the remainder of 2026.
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