U.S. technology shares clawed back ground on Tuesday, closing out a short-lived AI spending selloff that had rattled investors and pushed the Nasdaq into correction territory earlier in the week. The rebound came as Wall Street shrugged off midterm elections and focused on corporate results and commodity prices.
Indexes finish mixed but tech leads recovery
The S&P 500 added 0.37% by the closing bell, while the tech-heavy Nasdaq rose 0.83%. The Dow Jones Industrial Average slipped 0.38%, weighed down by Apple, whose shares fell 1.9% after the company issued a weaker-than-expected margin forecast tied to rising memory chip costs.
Nvidia, a bellwether for the artificial intelligence trade, gained 2.3% after four consecutive sessions of losses. Other semiconductor names also advanced, with Advanced Micro Devices, Broadcom and Micron Technology all finishing higher.
The recovery followed a brief but sharp pullback in AI and tech stocks that began last week. October marked the Nasdaq’s largest monthly decline since March 2025, and the index ended Monday in correction territory, down 10% from its record close on October 6.
Election results draw limited market reaction
Tuesday’s midterm elections did not appear to have a major effect on trading, though investors are anticipating that Democrats will win at least a majority in the House and could pick up seats in the Senate. Such an outcome could lead to more regulation of artificial intelligence, a prospect that has been on the radar of technology investors.
Historical patterns suggest markets tend to recover once election results are settled, according to an analysis of post-midterm performance from 1980 to 2024. Wall Street is often anxious before elections because of uncertainty, but tends to regain its footing afterward.
Oil price decline offers additional relief
A drop in oil prices also helped ease investor concerns. Brent crude, the global benchmark, fell to $103 a barrel on Tuesday from $117 at the end of October, amid potential new negotiations involving Iran and Russia. Lower energy costs can support equity valuations by reducing input expenses and easing inflation pressures.
Despite the recent volatility, the major indexes remain solidly higher for the year. The S&P 500 is up 10% so far in 2026, while the Nasdaq and the Dow have gained 9% and 7%, respectively. Those gains have been fueled largely by investments in AI, particularly the chips and infrastructure needed to power the technology.
While many Americans cite frustration with the higher cost of living as a key factor in their voting decisions, Wall Street has continued to soar on AI-related spending. The tension between Main Street concerns and market enthusiasm for AI remains a backdrop as investors assess whether the recent selloff was a brief pause or a sign of deeper unease.
For now, the Tuesday session suggested that buyers were willing to step back in after the pullback, with chipmakers leading the way and the broader tech sector recovering much of what it lost during the previous week’s decline.
