By Karim Hammam
US technology stocks recovered Tuesday afternoon following a selloff that rattled investors concerned about heavy spending on artificial intelligence. The S&P 500 rose 0.37% at the close, while the Nasdaq gained 0.83%. The Dow Jones Industrial Average slipped 0.38% after Apple shares fell 1.9% on a weaker-than-expected margin forecast tied to higher memory chip costs.
The midterm elections appeared to have limited immediate impact on Wall Street, though investors anticipate Democrats will secure at least a House majority and possibly gain Senate seats, which could bring increased AI regulation.
Chipmakers Lead Gains
Nvidia shares jumped 2.3% after four sessions of declines, while fellow semiconductor companies Advanced Micro Devices, Broadcom and Micron Technology also advanced. The rally marked the end of a brief selloff in AI and tech stocks that began last week, during which the Nasdaq suffered its largest monthly decline since March 2025 and entered correction territory on Monday, down 10% from its Oct. 6 record close.
Oil Prices Ease
Brent crude fell to $103 a barrel on Tuesday from $117 at the end of October, as potential new negotiations with Iran and Russia eased supply concerns. Lower oil prices provided additional relief to investors.
Year-to-Date Performance
Despite recent volatility, the S&P 500 is up 10% for the year, while the Nasdaq and Dow have risen 9% and 7% respectively. Historical analysis from CNBC covering post-midterm market performance from 1980 to 2024 shows equities tend to rise after elections, with pre-election jitters typically giving way to recovery once results are settled.
