U.S. technology shares lifted the Nasdaq Composite on Tuesday, Nov. 3, as chipmakers rebounded, but Apple fell after warning that memory costs would pressure margins and traders weighed the midterm vote, Reuters reported.
The Nasdaq added 0.83% to 25,372.01. Nvidia rose 2.3% after four sessions of losses, Micron Technology gained 2.6%, and Microsoft and Amazon each advanced more than 2%. The Philadelphia semiconductor index also climbed. AMD shares rose ahead of the company’s quarterly results, due after the market closed.
Apple lost 1.9% after saying higher memory-chip costs would weigh on its gross margin during the holiday quarter. Jay Hatfield, chief executive of Infrastructure Capital Management, told Reuters that investors were showing more appetite for riskier technology shares than for comparatively defensive names such as Apple.
The gains came as investors continued to question whether spending on artificial intelligence infrastructure would produce cash quickly enough. On Monday, Nov. 2, the Nasdaq 100 closed more than 10% below its Oct. 6 record, meeting the usual threshold for a correction. Amazon and Alphabet had fallen sharply the previous week after their quarterly results added to investor concerns about AI costs. EconoTimes has covered volatility in the Nasdaq tied to AI shares.
The broader market was mixed. The S&P 500 rose 0.36% to 7,568.92, while the Dow Jones Industrial Average fell 0.38% to 51,787.04. Consumer staples and materials had the steepest declines; six of the S&P 500’s 11 sectors finished lower. Declining S&P 500 stocks outnumbered advancers by 1.6 to 1. Trading volume was 16.6 billion shares, below the 20-session average of 17.4 billion, Reuters reported.
Investors also considered how the election could affect fiscal policy, regulation, taxes and government spending. Ken Mahoney, chief executive of Mahoney Asset Management, told Reuters the vote had been an anticipated source of market volatility. Polls and nonpartisan analysts favored Democrats gaining the House, while control of the Senate remained uncertain. Election returns were the next event investors were watching for clues about the policy outlook.
