The U.S. stock market saw the Nasdaq rebound on November 3, driven by gains in technology stocks, as investors closely monitored the midterm elections.
On the New York Stock Exchange, the tech-heavy Nasdaq Composite Index closed up 207.65 points (0.83%) at 25,372.01.
The large-cap S&P 500 index finished 27.52 points (0.36%) higher at 7,568.92, breaking a three-day losing streak. In contrast, the Dow Jones Industrial Average closed down 197.26 points (0.38%) at 51,786.72.
Shares of semiconductor companies showed strong performance across the board. AMD rose more than 3% ahead of its third-quarter earnings report, while Broadcom also gained 3%. Micron Technology and NVIDIA each saw increases of over 2%.
However, Apple’s stock fell nearly 2% following a disappointing profit outlook and weak iPad sales reported after the previous day's market close.
This rebound came after the Nasdaq had dropped over 1% the day before, continuing a trend of selling pressure on tech stocks. The Nasdaq and S&P 500 had previously experienced three consecutive days of declines.
While semiconductor and AI-related stocks showed signs of recovery, analysts noted that market uncertainties remain. Sean Snyder, a strategist at Potomac Fund Management, told CNBC, "Concerns about capital raising costs and the necessary debt financing will persist for some time." He added, "There may be room for an additional 4-5% decline, but if this adjustment occurs without a recession, the typical downturn tends to stop at that level."
Investors were also attentive to the midterm elections taking place that day. The elections involved all 435 seats in the U.S. House of Representatives and 35 of the 100 Senate seats (including one special election), as well as governors in 36 states.
The Republican Party currently holds a majority in both the House and Senate, and market interest centers on whether the Democratic Party can regain control of the House and possibly the Senate. Prediction markets estimate a 75% chance that Democrats will secure a Senate majority.
If Democrats gain control of both chambers, it could lead to selling pressure on AI-related stocks, potentially impacting the market on November 4, according to CNBC. However, this scenario assumes that election results have not yet been fully reflected in stock prices.
Should Democrats reclaim either the House or Senate, it could significantly influence sectors such as defense, AI, and healthcare.
Nonetheless, Snyder from Potomac Fund Management suggested that the market could still rise regardless of the election outcome. He stated, "AI-related stocks have already been hit hard, and considering the uncertainty surrounding the midterms will dissipate, there is a possibility of a relief rally regardless of the election results."
Meanwhile, international oil prices fell for the second consecutive day amid hopes for peace between the U.S. and Iran. On the New York Mercantile Exchange, December West Texas Intermediate (WTI) crude oil settled at $96.09 a barrel, down $0.37 (0.38%) from the previous trading day. At the London ICE Futures Exchange, January Brent crude was recorded at $103.60 a barrel, down $1.17 (1.12%).
* This article has been translated by AI.
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