Nasdaq rises over 1 per cent as chipmakers rally
Artificial intelligence heavyweights rebounded on Tuesday ahead of US midterm election results while Apple shares fell.
The Nasdaq jumped 1.06 per cent to 25,431.03 points on Tuesday as chipmakers rallied ahead of US midterm election results, according to Moneycontrol.
The Philadelphia chips index rose almost 3 per cent, while AMD gained 5.5 per cent before its quarterly earnings. Microsoft and Amazon each gained about 2 per cent.
In contrast, Apple shares dropped 1.8 per cent after the company warned that rising memory chip costs could pressure its holiday-quarter gross margin.
Jay Hatfield, chief executive officer at Infrastructure Capital Management, said the movement represents a rotation from safe tech like Apple into riskier tech like chipmakers.
The Nasdaq-100 ended Monday more than 10 per cent below its October 6 record-high close, as investors worry that AI infrastructure investments are outpacing near-term cash generation.
The S&P 500 rose 0.59 per cent to 7,585.95 points, while the Dow Jones Industrial Average fell 0.24 per cent to 51,859.84 points.
