US stock futures mixed as Apple falls and midterm results await
Technology stocks face pressure as investors monitor election outcomes and rising memory chip costs affecting Apple's margins.
US stock index futures showed mixed movement on Tuesday as markets awaited the results of the midterm elections and reacted to rising crude oil prices. According to reports from The Economic Times and Hindustan Times, Apple shares fell in premarket trading after the company cautioned that increasing costs for memory chips could impact its gross margins during the holiday quarter.
The Nasdaq-100 recently entered a correction, closing more than 10 per cent below its all-time high on Monday. This shift comes as investors express concern regarding the high levels of artificial intelligence spending by Big Tech companies and the lack of clear returns on those investments.
In the semiconductor sector, Nvidia rose after several days of losses, while AMD gained ahead of its quarterly earnings report. Other chip-related stocks, including Marvell Technology and Intel, also saw increases. Conversely, Palantir Technologies saw its shares decline despite forecasting fourth-quarter revenue above estimates.
The midterm elections serve as a verdict on the first two years of President Donald Trump's second term. While analysts suggest Democrats may take control of the House, the outcome for the Senate remains uncertain. Societe Generale analysts noted that concerns over government spending and deficits have contributed to market volatility.
Geopolitical tensions also remain a factor as crude oil prices rose following reports of US strikes on Iran's Qeshm Island. Regarding potential further military action, President Trump told reporters on Monday that he was not considering striking Iran after the midterms.
