Photo: Architect of the Capitol / Wikimedia Commons (public domain)
The Nasdaq snapped its three-day losing streak Tuesday, rising 0.8% as megacap technology stocks rebounded and Wall Street shrugged off a limited U.S. strike on Iran in the Strait of Hormuz, with Americans voting in midterm elections that will decide control of Congress.
The Nasdaq Composite climbed 207.70 points to 25,372.01, its first gain in four sessions. The S&P 500 added 27.52 points, or 0.4%, to 7,568.92, also ending a three-day slide. The Dow Jones Industrial Average fell 197.26 points, or 0.4%, to 51,786.72. The Russell 2000 rose 0.3% to 2,813.42.
The rally was narrow. Only four of the S&P 500’s 11 sectors rose – technology (+1.3%), communication services (+1.2%), industrials (+1.0%) and real estate (+0.1%) – while consumer staples dropped 2.1% and materials fell 2.0%, the day’s worst groups. Energy slid 0.8%, consumer discretionary 0.7%, financials 0.6%, utilities 0.6% and health care 0.3%.
Hormuz strike. U.S. forces carried out limited, defensive strikes on Iran’s Qeshm Island in the Strait of Hormuz after Iran’s Revolutionary Guard fired on a U.S. aircraft, the BBC reported. The IRGC said it shot down U.S. drones near the strait. Oil briefly rebounded on the news, then faded: WTI crude settled at $96.09 a barrel, down 0.4%, keeping most of Monday’s 7% collapse on hopes for a diplomatic deal. Gold settled down 0.7% at $3,940.40 an ounce.
Tech rebounds. Microsoft rose 2.7%, Meta 2.4%, Nvidia 2.3% and Amazon 2.1%, leading the Nasdaq’s comeback. Intel added 1%, steadying after last week’s 35% two-session collapse.
AI hardware reports tonight. AMD jumped 3.7%, Arista Networks 3.5% and Super Micro Computer 3.1% ahead of their quarterly reports after Tuesday’s close – the market’s next test of the AI-infrastructure trade after Friday’s rout in the group.
Apple slips. Apple fell 1.9% as investors weighed its forecast for 7% to 10% December-quarter revenue growth, below the roughly 11% analysts expected, against a record $114.5 billion quarter. Palantir slid 1.7%, giving back part of its post-earnings after-hours pop.
Shopify sinks. Shopify tumbled 8.7% after its third-quarter revenue and gross merchandise volume missed estimates. Keurig Dr Pepper sank 5.7% after flagging slower fourth-quarter U.S. coffee profit growth, dragging consumer staples to the worst sector loss.
Eaton jumps. Eaton surged 7% after reporting record third-quarter results – organic sales up 19%, above the high end of its guidance – and raising its organic growth outlook.
The rest of the tape. Coinbase jumped 5.5% as bitcoin rose about 1.4% to roughly $77,800. The 10-year Treasury yield climbed about 7 basis points to 4.96%. The dollar index edged up 0.1% to 101.87. The VIX fell 1.5% to 20.84.
What to watch. AMD, Super Micro and Arista report after tonight’s close. Midterm election results come in overnight, with control of the House and Senate at stake. Berkshire Hathaway reports later this week, and the October jobs report lands Friday.
JBizNews Desk | Wall Street
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