Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, US, Oct. 26, 2026.
Jeenah Moon | Reuters
The Nasdaq Composite rose on Tuesday as investors moved back into key technology stocks after recent pressure and geared up for U.S. midterm election results.
The tech-heavy index jumped 0.83% and closed at 25,372.01, recouping some of its latest losses. The Nasdaq-100 rose 0.7% to 28,180.26, remaining in correction territory and down about 10% from its recent high. The S&P 500 climbed 0.36% to 7,568.92 to break a three-day losing run. The Dow Jones Industrial Average lost 197.26 points, or 0.38%, to 51,786.72. The 30-stock index was weighed down by Apple shares.
Apple fell almost 2% after the iPhone maker issued a disappointing margin forecast late Monday and iPad sales in the fiscal fourth-quarter missed the Street’s estimates.
Conversely, shares of chipmakers saw gains. Advanced Micro Devices — which releases its third-quarter results after the bell — gained more than 3%, while Broadcom rose 3%. Micron Technology and Nvidia each added more than 2%.
Tuesday’s advance marks a reversal from the pullback seen Monday, which sent the Nasdaq down more than 1% and extended a recent retreat in the Nasdaq Composite and S&P 500 to a third day.
While semiconductor makers — and others tied to artificial intelligence — showed signs of recovery Tuesday, Shawn Snyder of Potomac Fund Management believes the market is not out of the woods.
“The concerns about the cost of capital and the level of debt financing necessary (are) going to persist for quite some time,” the economic strategist told CNBC. But the trade that relies on the artificial intelligence buildout could be getting close to oversold territory, he added, saying that “maybe there’s a little bit more downside, 4% or 5%, but eventually, if there’s not a recession associated with these drawdowns, normally that’s kind of where it stops.”
Oil prices, meanwhile, turned lower on speculation there might be progress in U.S.-Iran negotiations. Brent crude lost 1.12% to settle at $103.60 per barrel. West Texas Intermediate futures settled 0.38% lower at $96.09 per barrel.
Election Day
Investors are also focused on the midterm elections Tuesday, which will decide which party controls the House and Senate starting in January. Prediction market traders see a nearly 75% likelihood of Democrats taking the Senate.
A sweep of the House and Senate by Democrats could weigh on the broader market on Wednesday — and spark a sell-off in artificial intelligence stocks especially — if investors haven’t already positioned for that outcome. If Republicans keep control of the Senate or both chambers, the market may see short-term gains, JPMorgan said this week.
Even with President Donald Trump in the White House, a victory by Democrats in either the House or Senate could shape investigations and oversight in Washington — key for industries including defense, AI and healthcare.
Once the elections are over, it’s possible the market may still move higher regardless of the outcome, according to Snyder at Potomac Fund.
“You’re looking at an AI trade that’s already taken a hit,” he said. “That, combined with the idea that the uncertainty from the midterm fades, probably argues for relief rally no matter what.”
Correction: A prior version of this story had an incorrect forecast for Apple’s first-quarter guidance.