Market Recap: Nvidia and Chipmakers Drive Wall Street Higher

The S&P 500 index rose 0.6% on Tuesday, November 3, as a rebound in major technology stocks lifted U.S. markets.

This gain occurred despite a drop in Apple shares and mixed trading across other sectors. The Dow Jones Industrial Average fell 87 points, or 0.2%, as of 11 a.m. Eastern time. The Nasdaq composite index increased by 1.1%. While more stocks within the S&P 500 index fell than rose, the weight of the major tech names pulled the overall figure upward.

Nvidia stock climbed 2.9%, serving as the primary driver for the S&P 500's positive movement. Other semiconductor manufacturers posted strong gains. Broadcom shares increased by 3.8%, Advanced Micro Devices rose 5.5%, and Micron Technology stock went up 3.0%. These companies have recently swung between gains and losses amid investor concerns about high valuations in the artificial intelligence sector.

Apple, often viewed as less dependent on AI, saw its stock decline by 2.7%. The company reported higher profit and revenue for the latest quarter than analysts predicted. However, Apple indicated it expects to earn less profit per dollar of revenue in the final three months of this year. This margin pressure stems from higher memory chip costs, which have increased due to demand for building AI data centers.

Palantir Technologies shares fell 1.5% despite a better-than-expected profit report. The software company stated that it generated more revenue from U.S. commercial clients than from the U.S. government for the first time. Commercial revenue in the United States rose 148% from the previous year. Other stocks that beat profit expectations also performed well. Celanese shares climbed 3.7%, and DuPont stock added 6.9%.

Revvity stock jumped 12%, marking one of the largest gains in the S&P 500. The life sciences company exceeded analyst forecasts. CEO Prahlad Singh said end market conditions are continuing to improve. Investors are also watching the midterm elections, though historical data suggests these events have limited impact on broad market trends. Since 1970, the S&P 500 has always posted a positive return in the six months following a midterm election, according to Brock Weimer, an analyst at Edward Jones.

In other markets, the yield on the 10-year Treasury rose to 4.93% from 4.91% late Monday. This followed a report showing employers advertised more job openings at the end of September than economists expected. Oil prices fluctuated, with Brent crude climbing above $107 per barrel overnight before dropping to $103.13, a decrease of 1.6%. Uncertainty regarding the war with Iran continues to affect energy markets. In Asia, South Korea's Kospi index dropped 3.6% following losses for Samsung Electronics and SK Hynix. Australian stocks rose 0.3% after the central bank raised its benchmark interest rate for the fifth time this year.