S&P 500 Gains 0.5% as Chip Stocks Offset Apple's 2% Slide

The S&P 500 rose 0.5 percent on Tuesday, driven by a rebound in major semiconductor stocks that offset a decline in Apple. The Nasdaq composite climbed 1 percent, while the Dow Jones Industrial Average fell 247 points, or 0.5 percent, as of 12:21 p.m. Eastern time. More stocks within the S&P 500 declined than advanced, but the weight of the technology sector pushed the index higher.

Nvidia led the rally, gaining 3.2 percent to become the strongest force lifting the S&P 500. Advanced Micro Devices added 5.5 percent, Broadcom rose 3.2 percent, and Micron Technology increased 2.6 percent. These gains helped stabilize the market after a volatile session the previous day, when many AI-related stocks flipped from gains to losses in the afternoon.

Apple stock fell 2 percent despite reporting quarterly profits and revenue that exceeded analyst expectations. The company noted that it expects to make less profit from each dollar of revenue in the final three months of the year. This margin pressure stems from rising costs for memory chips, which have become more expensive due to high demand from the construction of AI data centers.

Palantir Technologies dropped 2.1 percent even though it also posted better profits than forecasters predicted. The software firm stated that it generated more revenue from U.S. companies than from the U.S. government for the first time. Commercial revenue in the United States surged 148 percent compared to the same period a year ago.

Investors also weighed the results of Tuesday's midterm elections, which may contribute to market uncertainty. Brock Weimer, an analyst at Edward Jones, noted that since 1970, the S&P 500 has achieved a positive return in the six months following every midterm election. Some market observers speculate that a Democratic sweep of Congress could lead to stricter regulations on AI development, though President Donald Trump would retain veto power.

Several other companies saw their shares rise after beating summer profit estimates. Celanese climbed 4.7 percent and DuPont gained 8.8 percent. Revvity jumped 11.7 percent, marking one of the largest gains in the S&P 500. The life sciences company's CEO, Prahlad Singh, said end market conditions are continuing to improve after the firm topped analyst expectations.

A report on the U.S. job market indicated that employers were advertising more job openings at the end of September than economists had projected. This data helped push the yield on the 10-year Treasury up to 4.96 percent from 4.91 percent late Monday. The S&P 500 had reached a record high last month, supported by strong corporate earnings despite high inflation and elevated interest rates.

Oil prices fluctuated amid uncertainty regarding the war with Iran. Brent crude climbed above $107 per barrel overnight before dipping below $101 during the morning session. It was last trading down 1.4 percent at $103.27. In international markets, European indexes fell and Asian markets were mixed. South Korea's Kospi index dropped 3.6 percent, among the world's sharpest declines, following losses for Samsung Electronics and SK Hynix. Australian stocks rose 0.3 percent after the central bank raised its benchmark interest rate for the fifth time this year.