Nasdaq Rallies as AI Stocks Rebound on US Midterm Election Day
Wall Street’s tech-heavy Nasdaq climbed 0.83% on Tuesday, November 3, closing at 25,365.67 as investors snapped up beaten-down artificial intelligence stocks amid uncertainty over the US midterm election results. The broader S&P 500 also edged higher, gaining 26.65 points, or 0.35%, to finish at 7,568.05.
Tech bellwethers Microsoft and Amazon each gained approximately 2%, helping offset a sharp 1.8% drop in Apple shares. The iPhone maker warned that rising memory-chip costs would pressure its holiday-quarter gross margin to between 45% and 46%—below analyst expectations of 46.5%.
Apple’s earnings per share of $2.10 beat the consensus estimate of $1.99, but the margin warning overshadowed the earnings surprise.
Semiconductor stocks also rebounded. Nvidia and Micron each gained more than 2%, while AMD and Broadcom each rose over 3%.
The Nasdaq 100 had entered correction territory earlier in the week, falling more than 10% from its October 6 record-high close. Investors had questioned whether massive AI infrastructure spending would translate into near-term profits.
AI analytics firm Palantir Technologies provided a bright spot, forecasting fourth-quarter revenue above analyst estimates after topping expectations for the third quarter. Market participants are watching the midterm results closely for signals on fiscal policy, regulation and taxes.
Source: Virginia Business / Reuters, November 3, 2026