Wall Street ended a split session on Tuesday as a rebound in semiconductor stocks pushed the Nasdaq and S&P 500 higher, while a disappointing profit forecast from Apple weighed on the Dow Jones Industrial Average. Investors were also keeping an eye on oil prices, which swung on mixed signals about US-Iran diplomacy, and on the midterm election results due after the close.
What Moved Markets
The Dow Jones Industrial Average slipped 197.12 points, or 0.38%, to close at 51,786.86. The S&P 500 gained 27.52 points, or 0.36%, to finish at 7,568.92. The Nasdaq Composite rose 207.65 points, or 0.83%, to end at 25,372.01, snapping a three-day losing streak.
Technology was the strongest of the 11 S&P 500 sectors. Chipmakers including Nvidia, AMD, Broadcom, Micron and Intel gained roughly 3% to 4% in morning trading as investors bought back into big tech after its recent slide. The Nasdaq-100 closed Monday in a correction, meaning more than 10% below its October record, so some of today’s buying looked like a bounce from depressed levels. Still, the rally was narrow: at one point in the afternoon, more S&P 500 stocks were falling than rising.
Oil was a second theme. Brent crude fell more than 7% on Monday after signs that US and Iranian leaders were open to talks, jumped early Tuesday on a reported US strike, then slipped back to around $103 a barrel on rumors of a deal. High oil prices feed into gasoline costs and inflation, which keeps interest rates in focus. The 10-year Treasury yield, the rate the government pays to borrow for a decade, was about 4.91%.
Notable Movers
Apple (AAPL) fell 1.90%, erasing roughly $94 billion in market value. The company reported record September-quarter revenue of $114.5 billion, but its profit margin forecast for the holiday quarter disappointed, with rising memory chip costs a concern. Because Apple carries heavy weight in the Dow, it dragged the average lower.
Palantir (PLTR) dropped 1.65% even though quarterly revenue nearly doubled, up 96%. Investors focused on slower growth in the value of new US business contracts. Shopify (SHOP) fell 8.74% after its revenue of $3.74 billion came in just below analyst estimates and some key measures missed.
Aehr Test Systems (AEHR) jumped 26.50% after record revenue and a raised full-year forecast. Aurora Cannabis (ACB) rose 22.27% after Organigram agreed to buy it for C$7.80 a share. On the downside, Stevanato Group fell 28.37% after lowering its expectations for revenue tied to GLP-1 drugs, and CVR Energy dropped 12.94% after proposing a $750 million stock offering.
Looking Ahead
Attention turns first to the midterm election results. Prediction markets see a high chance that Democrats win the Senate, and some analysts have warned that a sweep of both chambers could weigh on stocks on Wednesday. AMD reports quarterly results after the close, which could set the tone for chip stocks, and investors will continue to follow oil prices, Treasury yields and Federal Reserve comments on inflation. As always, big moves after earnings can reverse quickly, so patience and diversification remain useful for long-term investors.