US technology stocks rose on Tuesday afternoon, recovering from a brief selloff that had unsettled investors over spending on artificial intelligence. The midterm elections appeared to have little immediate impact on Wall Street, although expectations that Democrats could secure at least a House majority and gain seats in the Senate raised the possibility of tougher AI regulation.
The S&P 500 gained 0.37% at the close, while the technology-heavy Nasdaq advanced 0.83%. The Dow fell 0.38%, weighed in part by a 1.9% drop in Apple shares after the company issued a weaker-than-expected margin forecast, citing higher memory-chip costs.
Nvidia rose 2.3%, ending a four-session decline. Other chipmakers, including Advanced Micro Devices, Broadcom and Micron Technology, also climbed.
The gains marked a pause in a selloff in AI and technology stocks that began the previous week. The Nasdaq had entered correction territory on Monday, closing 10% below its record close on October 6. Its October decline was the index’s largest monthly drop since March 2025.
Lower oil prices also helped ease investor concerns. Brent crude, the global benchmark, fell to $103 a barrel on Tuesday from $117 at the end of October, amid the prospect of new negotiations with Iran and Russia.
Wall Street’s gains this year have been supported by investment in AI, particularly in the chips and infrastructure needed to run the technology. The S&P 500 was up 10% for the year to date, while the Nasdaq had gained 9% and the Dow 7%.
A CNBC analysis of market performance after midterm elections from 1980 to 2024 found that markets have tended to rise after voting. Investors are often cautious ahead of elections when the outcome is uncertain, with markets tending to recover once results are settled.
Sources: The Guardian Technology.