US tech stocks made a recovery on Tuesday afternoon after a selloff spooked investors over AI spending.
Tuesday’s midterm elections didn’t appear to have a huge impact on Wall Street, though investors are predicting Democrats get at least a majority in the House and potentially gain seats in the Senate, which could lead to more AI regulation.
The S&P 500 was up 0.37% at market closing on Tuesday, while the tech-heavy Nasdaq increased 0.83% for the day. The Dow dropped 0.38% following a 1.9% dip in Apple’s share price after the company released a worse-than-expected margin forecast due to the higher cost of memory chips.
Nvidia picked up a 2.3% gain after dropping over four sessions, while fellow chipmakers Advanced Micro Devices, Broadcom and Micron Technology also jumped on Tuesday.
Tuesday marked the end of a brief selloff of AI and tech stocks that started last week, with the Nasdaq in October experiencing its largest monthly decline since March 2025. The Nasdaq had ended on Monday in correction territory, dropping 10% from its 6 October record close.
Small drops in oil prices, amid potential new negotiations with Iran and Russia, also eased investors. Brent crude, the global oil benchmark, dropped to $103 a barrel on Tuesday, down from $117 a barrel at the end of October.
While many Americans say frustration with the higher cost of living will be a major factor in their vote on Tuesday, Wall Street has continued to soar off investments in AI, particularly the chips and infrastructure used to power the technology. The S&P 500 is up 10% for the year so far, while the Nasdaq and the Dow are up 9% and 7%, respectively.
Analysis from CNBC of post-midterms market performance from 1980 to 2024 showed the market tends to pick up after an election. Wall Street is often jittery before an election, when results are uncertain, but tends to recover once results are settled.
