Nvidia Gains 2.9% as Apple Falls 1.8% on Higher Memory Chip Costs

Apple shares declined on Tuesday as rising costs for memory chips, driven by artificial intelligence infrastructure, weighed on the company's bottom line.

The S&P 500 index increased by 0.3% during midday trading. The Dow Jones Industrial Average lost 286 points, or 0.6%, at 10:15 a.m. Eastern time. The Nasdaq composite index rose by 0.7%.

Nvidia stock climbed 2.9%, acting as the primary driver for the S&P 500's gains. Broadcom shares advanced 3.1%, and Advanced Micro Devices stock increased 4.6%. These performance figures contrasted with Apple, which dropped 1.8%.

Apple reported that its profit and revenue for the most recent quarter exceeded analyst expectations. However, the company projected lower profit margins for each dollar of revenue during the final quarter of the year. This reduction is attributed to the rising price of memory chips required for computers, a trend fueled by the demand to build AI data centers.

Palantir Technologies stock fell 4.6% despite a profit beat. The company disclosed that revenue from U.S. commercial clients surpassed revenue from the U.S. government for the first time. U.S. commercial revenue increased by 148% compared to the previous year.

Analysts at Edward Jones noted that the S&P 500 has delivered positive returns in the six months following every midterm election since 1970. Brock Weimer, an analyst at Edward Jones, cited this historical pattern. Markets remain cautious regarding the potential for a Democratic sweep of Congress, which could introduce stricter regulations on AI development. Donald Trump retains the power to veto such measures as president. Wall Street often favors a split government to reduce the risk of major economic policy shifts.

Celanese stock rose 1.3%, and DuPont shares gained 4.9%, following stronger-than-expected third-quarter profits. Revvity jumped 11.2%, representing one of the largest increases in the S&P 500. CEO Prahlad Singh stated that end market conditions are continuing to improve. The life sciences company also exceeded analyst expectations for the summer period.

The yield on the 10-year Treasury bond increased to 4.96% from 4.91% late Monday. This shift followed a job market report indicating that employers advertised more job openings at the end of September than economists had predicted. In the oil sector, Brent crude prices fluctuated significantly. The price climbed above $107 per barrel in the morning before falling below $101. It last traded at $103.37, down 1.3%, amid uncertainty regarding the war with Iran.

International markets showed mixed results. South Korea's Kospi index dropped 3.6%, marking one of the sharpest declines globally. This move followed losses for Samsung Electronics and SK Hynix. In Australia, stocks rose 0.3% after the central bank raised its benchmark interest rate for the fifth time this year.