U.S. stocks delivered a mixed performance on Tuesday, with technology shares leading a recovery as investors returned to major semiconductor and AI-related stocks following recent market weakness.
The Nasdaq Composite gained 0.83% to close at 25,372.01, while the Nasdaq-100 advanced 0.7% to 28,180.26. The S&P 500 rose 0.36% to 7,568.92, snapping its three-session losing streak. In contrast, the Dow Jones Industrial Average declined 197.26 points, or 0.38%, to finish at 51,786.72.
Apple shares fell nearly 2% after the company issued a weaker-than-expected profit margin outlook and reported disappointing iPad sales. However, semiconductor stocks provided support to the broader technology sector. AMD gained more than 3% ahead of its earnings announcement, while Broadcom rose 3%. Nvidia and Micron Technology also advanced by more than 2%.
Despite Tuesday's recovery, market analysts remain cautious, suggesting that the recent volatility may not be over, particularly for technology and AI-related stocks.
Meanwhile, oil prices moved lower amid renewed speculation about potential progress in diplomatic negotiations between the United States and Iran. Brent crude settled 1.12% lower at $103.60 per barrel, while WTI crude declined 0.38% to $96.09.
U.S. Midterm Elections Keep Investors on Alert
Investors are closely monitoring the U.S. midterm elections, which will determine control of the House of Representatives and Senate beginning in January.
Market participants are assessing the potential impact of a shift in congressional power on government policies, corporate regulation, taxation and key industries.
According to market expectations, a Democratic victory in both chambers could create short-term uncertainty, particularly for AI-related companies and other sectors exposed to regulatory changes. Conversely, a Republican hold on the Senate or both chambers could provide temporary support to equities.
Beyond the immediate market reaction, the election outcome could influence political investigations, government oversight and policy direction across the defence, healthcare and technology industries.
Market takeaway: The rebound in technology stocks provided temporary relief to Wall Street, but investors remain cautious as election uncertainty, geopolitical developments and upcoming corporate earnings continue to influence market sentiment.
