Nasdaq rebounds 0.8%, led by AI stocks
· BehindLines newsroom
The Nasdaq Composite gained 0.8% on Tuesday, November 3, to 25,372.01 points, in a mixed session on Wall Street. The S&P 500 rose 0.4%, to 7,568.92 points, while the Dow Jones fell 0.4%, to 51,786.72 points.
The support came from several large artificial-intelligence-related stocks. Nvidia ended up 2.3% and Broadcom 3.1%, while Microsoft, Amazon and Meta each gained more than 2%. Their advance masked a less favorable market: most stocks in the S&P 500 fell, AP reports.
The rebound in chip makers was already visible in the Reuters report published at 2:36 p.m. New York time. At that point in the session, Nvidia was up 3%, Micron 2.1% and AMD 5.5%, ahead of its results expected after the market close. Apple was then down 1.8%. These moves describe the session in progress, before final prices.
The recovery follows a sharp deterioration in technology stocks. The Nasdaq-100 had ended Monday more than 10% below its October 6 record close, thus entering a correction according to Reuters. Investors are questioning the gap between the massive spending on AI infrastructure and the cash it can generate in the short term.
Apple illustrates another consequence of this equipment race. Data-center demand is making memory chips more expensive, raising its costs. The company expects pressure on its margin during the holiday quarter. Its shares ended down 1.9%, despite quarterly results above expectations, according to AP.
The US midterm elections formed the political backdrop to the session. Their results were still awaited at the time of the Reuters afternoon update.