S&P 500, Nasdaq Recover From AI Rout On US Midterm Election Day — META, AAPL, AMD, SKHY In Focus

• The S&P 500 ended Tuesday 0.4% higher, the Nasdaq 100 rose 0.7%, and the Dow Jones Industrial Average eased 0.4%.
• Meta Platforms is set to raise $15 billion from a US dollar bond sale. 
• AMD beat Q3 earnings expectations and forecast strong 2027 revenue gains.  

The S&P 500 and Nasdaq ended higher on Tuesday with overall tech and chipmaker stocks staging a recovery as traders prepare for the outcome of the midterm election.

The S&P 500 ended Tuesday 0.4% higher, the Nasdaq 100 rose 0.7%, and the Dow Jones Industrial Average eased 0.4%. The Russell 2000, which tracks small-cap stocks, added 0.2%. 

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The SPDR S&P 500 ETF (SPY) rose 0.3%, and the SPDR Dow Jones Industrial Average ETF (DIA) fell 0.4%. Meanwhile, the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) ended 0.6% higher on Tuesday.  

Meanwhile, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF rose between 2% and 2.5% each on Tuesday amid strength in Nvidia (NVDA), AMD, Micron Tech (MU) and Broadcom (AVGO). The broader Vanguard Information Technology ETF (VGT) added 1.3%.

Retail sentiment on Stocktwits for SPY improved to ‘bullish’ from ‘neutral’, while it remained in ‘bearish’ territory for DIA and QQQ.

US Market Drivers

Market participants are keeping a close eye on Tuesday’s midterm elections, which will determine congressional control in January. Odds on prediction markets currently indicate an almost 75% probability of Democrats securing the Senate.

Should Democrats win either chamber under President Donald Trump, it could significantly impact regulatory oversight and inquiries in Capitol Hill — carrying broad implications for defense, artificial intelligence, and healthcare sectors.

Once the elections are over, it’s possible the market may still move higher regardless of the outcome, Shawn Snyder of Potomac Fund Management told CNBC.

“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.”

Meanwhile, Apple stock dropped about 2% on Tuesday, limiting overall market gains, after its quarterly margins and sales figures failed to impress investors. 

Key Trending Stocks

Advanced Micro Devices Inc.(AMD) reported a 45% surge in third-quarter revenue to a record $13.4 billion on Tuesday, bolstered by soaring demand for artificial intelligence processors and data center chips. 

South Korean chipmaker SK Hynix (SKHY)  is facing a major roadblock in its domestic expansion as its U.S.-headquartered subsidiary, Solidigm’s plan to build a memory chip factory in the US has hit regulatory hurdles, Reuters reported.  

Netflix (NFLX) announced the launch of a new artificial intelligence tool on Tuesday designed to act as a personal matchmaking assistant for its vast content catalog. 

Market research firm TrendForce on Tuesday said Marvell Technology’s (MRVL) planned acquisition of Lumentum (LITE) could unite optical and electronic capabilities in a way that potentially challenges Broadcom’s (AVGO) leadership in AI optical communications and interconnects. 

Meta Platforms (META) is exploring a substantial cross-border debt package of about $20 billion to fund its ongoing operations and capital needs, Bloomberg reported.  

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