Traders work at the New York Stock Exchange on Nov. 2, 2026. NYSE The Nasdaq Composite rose on Tuesday as investors returned to key technology stocks after recent pressure and prepared for the results of the U.S. midterm elections. The technology index jumped 0.8%, recovering some of its latest losses. The Nasdaq-100 also rose 0.6%, but was still trading in correction territory, still more than 10% below its recent high. The S&P 500 rose 0.4%, while the Dow Jones Industrial Average fell 217 points, or 0.4%, hurt by Apple shares. Apple fell 2% after the iPhone maker issued a disappointing margin forecast late Monday and iPad sales in the fiscal fourth quarter missed Street estimates. By contrast, shares of chipmakers posted gains. Advanced Micro Devices, which reports its third-quarter results after the bell, gained 4%, while Broadcom rose more than 3% and Micron Technology, Nvidia and Intel each gained nearly 3%. Tuesday’s advance marks a reversal of the pullback seen on Monday, which sent the Nasdaq down more than 1% and extended a recent decline in the Nasdaq Composite and S&P 500 to a third day. While semiconductor manufacturers (and others linked to artificial intelligence) showed signs of recovery on Tuesday, Potomac Fund Management’s Shawn Snyder believes the market is not out of the woods. “Concerns about the cost of capital and the level of debt financing needed [are] “It’s going to persist for quite some time,” the economic strategist told CNBC. But trading that depends on the development of artificial intelligence could be approaching oversold territory, he added, saying that “maybe there’s a little more downside, 4% or 5%, but eventually, if there’s no recession associated with these reductions, that’s usually where it stops.” Brent crude fell almost 1% to about $104 a barrel. West Texas Intermediate futures were little changed at about $96 a barrel. Election Day Investors are also focused on Tuesday’s midterm elections, which will decide which party will control the House and Senate starting in January. Prediction market traders see a nearly 75% chance that Democrats will win the Senate. especially stocks, if investors have not yet positioned themselves for that outcome. If Republicans maintain control of the Senate or both chambers, the market may see near-term gains, JPMorgan said this week. Even with President Donald Trump in the White House, a Democratic victory in the House or Senate could shape investigations and oversight in Washington, key to industries such as defense, artificial intelligence and health care. Once the election is over, the market may still rise regardless of the outcome, according to Snyder on. Potomac Fund. “We’re looking at an AI operation that has already taken a hit,” he said, “that, combined with the idea that medium-term uncertainty is fading, likely argues for a relief rally no matter what.” Correction: A previous version of this story had an incorrect forecast for Apple’s first-quarter guidance.
