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The Nasdaq rebounded in Tuesday’s midday trading as chipmakers rallied, while a decline in Apple kept the Dow Jones Industrial Average in the red.
In CNBC’s market report updated at 12:24pm EST on November 3, the Nasdaq Composite was up 0.8% and the S&P 500 had gained 0.4%. The Dow was down 217 points, or 0.4%. These figures reflect that report’s midday snapshot, not prices at the moment of publication.
Chipmakers lead the recovery
Advanced Micro Devices gained 4% ahead of its third-quarter earnings release, scheduled for after Tuesday’s closing bell. Broadcom rose more than 3%, while Micron Technology, Nvidia and Intel each gained nearly 3%, according to CNBC’s 12:24pm report.
The gains marked a reversal from Monday, when the Nasdaq fell more than 1% and both the Nasdaq Composite and S&P 500 extended their declines to a third consecutive session.
The Nasdaq-100, a separate index from the Nasdaq Composite, rose 0.6% in CNBC’s midday report. Even after that bounce, it remained more than 10% below its recent high, leaving it in correction territory.
Apple weighs on the Dow
Apple fell 2% after the iPhone maker issued a disappointing margin forecast late Monday and fiscal fourth-quarter iPad sales missed Wall Street estimates, CNBC reported. The stock’s decline helped keep the Dow lower even as semiconductor shares recovered.
The split showed that Tuesday’s technology rebound was uneven. Stronger chip stocks lifted the Nasdaq, but the recovery had not erased the recent losses or the concerns about financing the artificial-intelligence buildout.
Shawn Snyder, an economic strategist at Potomac Fund Management, told CNBC that concerns about the cost of capital and the debt financing needed for that buildout would persist. He also said the AI trade could be approaching oversold territory.
Investors were also awaiting U.S. midterm election results. The midday stock moves did not establish an election outcome, and AMD had not yet reported its quarterly results.
Earlier coverage: Dow Drops 300 Points as Election Day Trading Splits Wall Street. That opening report is a separate, earlier snapshot of Tuesday’s session.
JBizNews Desk | Wall Street
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