US tech stocks recovered on Tuesday afternoon after a selloff over AI spending, lifting the S&P 500 by 0.37 percent and the Nasdaq by 0.83 percent at the close. Tuesday was US midterm election day, and the vote did not appear to move Wall Street much.
Election day and AI regulation
Investors had priced in a likely Democratic win in at least the House, with possible gains in the Senate. Markets have tended to pick up after elections, according to CNBC’s analysis of performance from 1980 to 2024.
The selloff in AI and tech stocks began the prior week and ended on Tuesday. The Nasdaq had already fallen about 10 percent from its 6 October record close by Monday, which put it in correction territory.
Apple and Nvidia move in opposite directions
Apple shares dipped 1.9 percent after the company forecast margins below expectations. The shortfall was tied to higher costs for memory chips. Nvidia rose 2.3 percent after four sessions of declines.
Oil also eased, with Brent crude at $103 a barrel on Tuesday. Prices slipped slightly on hopes of new talks involving Iran and Russia. Brent had closed October at $117.
By our market data, the S&P 500 stood at 7,568.92 points at the 3 November close, while the Nasdaq Composite closed at 25,372.01 points. Both indices remain well up on the year, with the S&P 500 about 10 percent higher and the Nasdaq about 9 percent.
Related: US stocks slip as tech shares sell off on AI spending worries · Nasdaq climbs 0.83% as tech shares recover ground
Data: S&P Dow Jones Indices · Nasdaq
