U.S. stocks finished mixed on Tuesday as a rebound in several large technology and artificial-intelligence companies lifted the broader market, offsetting declines in Apple and much of Wall Street. The S&P 500 rose 0.4%, while the Nasdaq composite climbed 0.8%. The Dow Jones Industrial Average fell 197 points, or 0.4%.
The advance in the S&P 500 came even though most of its individual constituents declined. Nvidia was the largest upward force on the index, gaining 2.3%. Broadcom also strengthened, rising 3.1%, while Microsoft, Amazon and Meta Platforms each added more than 2%.
Technology stocks remain a source of volatility
The gains came after a recent period of unstable trading in technology and AI-related stocks. Investors have been reassessing companies whose valuations surged during the expansion of the AI market, creating sharp swings in some of the sector’s most influential names. AI-linked stocks had also changed direction during Monday’s session, moving from gains in the morning to losses in the afternoon.
| Index or company | Tuesday’s move |
|---|---|
| S&P 500 | Up 0.4% |
| Nasdaq composite | Up 0.8% |
| Dow Jones Industrial Average | Down 197 points, or 0.4% |
| Nvidia | Up 2.3% |
| Broadcom | Up 3.1% |
| Apple | Down 1.9% |
Apple fell 1.9% despite reporting quarterly revenue and profit that exceeded analysts’ expectations. The company said higher memory-chip costs would reduce the profit it earns from each dollar of revenue during the final three months of the year. Demand from companies building AI data centers has made computer memory more expensive, increasing pressure on businesses that rely on the components.
Apple has traditionally been viewed on Wall Street as less dependent on AI than some other major technology companies. Its results nevertheless showed how the investment cycle around AI can affect companies outside the main group of chip and cloud-computing beneficiaries, particularly through higher component costs.
Palantir slips despite stronger profit
Palantir Technologies declined 1.6% even though the software company also reported better-than-expected profit. Palantir said revenue from U.S. commercial customers exceeded revenue from the U.S. government for the first time. U.S. commercial revenue jumped 148% from a year earlier, according to the company.
- Nvidia gained 2.3% and provided the strongest upward contribution to the S&P 500.
- Broadcom rose 3.1%, while Microsoft, Amazon and Meta Platforms advanced more than 2%.
- Apple dropped 1.9% as higher memory costs pressured its expected profit margin.
- Palantir fell 1.6% despite reporting stronger profit and 148% annual growth in U.S. commercial revenue.
The market’s moves coincided with Tuesday’s midterm elections, in which the rising cost of living and AI were issues that crossed party lines. The election timing added a political backdrop to the session, but the day’s stock movements were primarily concentrated in technology, semiconductor and company-specific earnings developments.
