Traders work on the floor of the New York Stock Exchange (NYSE) on October 26, 2026 in New York City, USA.
Gina Moon | Reuters
of Nasdaq Composite It rose on Tuesday as investors returned to major technology stocks after recent pressure and braced for the outcome of the U.S. midterm elections.
The tech stock ratio rose 0.83% to close at 25,372.01, recouping some of its recent losses. of Nasdaq-100 It rose 0.7% to 28,180.26, still in correction territory and down about 10% from recent highs. of S&P500 It rose 0.36% to 7,568.92, breaking a three-day decline. of Dow Jones Industrial Average It decreased by 197.26 points (0.38%) to 51,786.72. The 30-stock index was weighed down by: apple KK.
Apple fell nearly 2% after the iPhone maker released disappointing profit margin estimates late Monday and fiscal fourth-quarter iPad sales fell short of Street expectations.
Conversely, the stock prices of semiconductor manufacturers rose. advanced micro device The company will report its third-quarter results after the bell, while the stock rose more than 3%. broadcom It increased by 3%. micron technology and Nvidia Each added more than 2%.
Tuesday’s gains mark a reversal from the decline seen on Monday, which sent the Nasdaq down more than 1% and extended the recent declines in the Nasdaq Composite and S&P 500 into a third day.
Chipmakers and other companies involved in artificial intelligence showed signs of recovery on Tuesday, but Potomac Fund Management’s Sean Snyder doesn’t think the market is out of the woods yet.
“Concerns about the cost of capital and the level of debt financing needed will continue for quite some time,” the economic strategist told CNBC. However, he added that trades that rely on augmented artificial intelligence may be approaching oversold territory. “Maybe there’s a little more downside, maybe 4% or 5%, but ultimately that’s usually where it stops, barring a recession associated with these drawdowns.”
Meanwhile, oil prices fell on speculation that there may be progress in negotiations between the US and Iran. brent crude oil The price fell by 1.12% to settle at $103.60 per barrel. West Texas Intermediate Futures It settled 0.38% lower at $96.09 per barrel.
election day
Investors are also keeping an eye on Tuesday’s midterm elections. These midterm elections will decide which political party will control the House and Senate starting in January. Prediction market traders say Democrats have a nearly 75% chance of winning the Senate.
If investors are not yet prepared for the outcome, Democrats’ sweep of the House and Senate could weigh on the broader market on Wednesday, triggering a selloff in artificial intelligence stocks in particular. JPMorgan said this week that markets could rise in the short term if Republicans retain control of the Senate or both chambers.
Even with President Donald Trump in the White House, a Democratic victory in either the House or the Senate could shape investigations and oversight in Washington that are key to industries such as defense, AI and health care.
Potomac Fund’s Snyder said the market could move higher once the election is over, regardless of the outcome.
“You’re looking at AI trading that’s already been hit,” he said. “If you combine that with the idea that midterm uncertainty is fading, relief will probably come no matter what.”
Correction: A previous version of this article contained incorrect predictions about Apple’s first-quarter guidance.
