US technology shares closed higher on Tuesday, clawing back ground after a selloff driven by worries over spending on artificial intelligence, The Guardian reports. The S&P 500 finished the session up 0.37%, and the tech-focused Nasdaq rose 0.83%. The Dow Jones Industrial Average slipped 0.38%, weighed down by a drop in Apple.
The rebound ended a short stretch of losses for AI and tech stocks that began the previous week. According to The Guardian, the Nasdaq recorded its steepest monthly fall since March 2025 in October, and it entered Monday in correction territory, meaning it had fallen 10% from its record close on 6 October.
Why it matters
The swing shows how tightly the market's mood is now tied to the cost of building out AI. Investors have pushed US indexes higher largely on the strength of spending on chips and the infrastructure that runs AI systems, and any hint that the spending might slow is enough to trigger sharp moves. The Guardian notes the S&P 500 is up 10% so far this year, with the Nasdaq up 9% and the Dow up 7%.
Chipmakers lead the recovery
Nvidia gained 2.3% after falling across four straight sessions, The Guardian reports. Other semiconductor names also advanced on Tuesday, including Advanced Micro Devices, Broadcom and Micron Technology.
Apple was the main drag on the Dow. Its shares fell 1.9% after the company issued a margin forecast that came in below expectations, which it attributed to the rising cost of memory chips, according to The Guardian.
Small declines in oil prices also helped calm investors. Brent crude, the international benchmark, fell to $103 a barrel on Tuesday from $117 at the end of October, The Guardian reports, amid the possibility of fresh negotiations involving Iran and Russia.
Elections draw little reaction on Wall Street
Tuesday's midterm elections appeared to have limited effect on trading. Investors expect Democrats to win at least a majority in the House and possibly pick up Senate seats, a outcome that could bring tighter oversight of AI, according to The Guardian.
Separate coverage pointed to a broader post-election pattern. CNBC's review of market performance after midterms from 1980 to 2024 found that stocks tend to rise once results are known, after nervousness in the run-up. CNBC also reported that the S&P 500 snapped a three-day losing streak on Election Day as chip stocks recovered.
Other outlets described a mixed session. The Wall Street Journal reported the Dow opened lower and that Apple fell after its earnings disappointed. Barron's said US indexes ended Tuesday mixed, with Fabrinet among the leaders and Dynatrace among the laggards. The Los Angeles Times reported that Nvidia and other large tech names lifted the market even as Apple and much of the wider market declined.
Attention now turns to how quickly the election results are settled and whether chip and AI-related shares can hold their gains through the rest of the week.
