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Nvidia Lifts US Stocks as S&P 500 Gains 0.37% and Nasdaq Rises 0.83%
Nvidia lifts US stocks as the S&P 500 gains 0.37% and the Nasdaq rises 0.83% after an AI-driven selloff.
Key points
- Apple shares fell 1.9% after a worse-than-expected margin forecast due to higher memory chip costs.
- Nvidia rose 2.3% after dropping over four sessions; AMD, Broadcom and Micron Technology also jumped.
- The Nasdaq had entered correction territory on Monday, down 10% from its 6 October record close.
Why it matters. Investors predict Democrats will take at least a House majority, which could lead to more AI regulation and weigh on AI and chip stocks.
US tech stocks recovered on Tuesday afternoon after an AI spending selloff spooked investors, with the S&P 500 up 0.37% and the Nasdaq up 0.83% at the close. Apple's shares fell 1.9% after it issued a worse-than-expected margin forecast due to higher memory chip costs, pulling the Dow down 0.38%. Nvidia gained 2.3% after four sessions of declines, while Advanced Micro Devices, Broadcom and Micron Technology also jumped on Tuesday.
Latest updates
Nvidia Lifts US Stocks as S&P 500 Gains 0.37% and Nasdaq Rises 0.83%
The Guardian reports that US tech stocks recovered on Tuesday afternoon after a selloff over AI spending had spooked investors. Nvidia and other big technology stocks lifted the market, while Apple and much of Wall Street declined. The S&P 500 closed up 0.37%, and the tech-heavy Nasdaq gained 0.83%. The Dow fell 0.38%, following an earlier dip of 1.9%. Investors said the midterm elections had little immediate impact on Wall Street, though they expect Democrats to win at least a House majority, which could bring more AI regulation.
Nasdaq and S&P 500 Turn Negative as Investors Rotate Out of Technology Stocks
U.S. stock indexes turned negative as investors kept moving money out of technology shares, according to CNBC's live market coverage. The move followed a losing week on Wall Street. Before the open, S&P 500 futures had been up 0.3% and Nasdaq-100 futures up 0.4%, while Dow Jones Industrial Average futures added 116 points, or 0.2%. Traders are bracing for a busy stretch that includes corporate earnings reports, a key jobs report and the midterm elections. Market direction is expected to depend heavily on how those results land.