US stocks finished mixed on Tuesday as technology shares rebounded from recent losses, while investors awaited the outcome of the US midterm elections.
The Nasdaq Composite gained 0.8%, recovering some of its recent declines, while the S&P 500 advanced 0.4%. The Dow Jones Industrial Average fell approximately 200 points, or 0.4%, weighed down by weakness in Apple shares.
The Nasdaq-100 rose 0.7% but remained in correction territory, trading around 10% below its recent high following sustained selling pressure across artificial intelligence-related stocks.
Semiconductor companies led the recovery, with AMD gaining 4% ahead of its quarterly earnings announcement. Broadcom climbed more than 3%, while Micron Technology and Nvidia each advanced more than 2%.
Apple declined almost 2% after issuing a disappointing margin forecast and reporting weaker-than-expected iPad sales for its fiscal fourth quarter.
The rebound followed three consecutive sessions of declines for the Nasdaq and S&P 500, as investors continued to assess the cost of financing large-scale artificial intelligence infrastructure projects.
Oil prices also declined amid speculation about potential progress in negotiations between Washington and Tehran over the Iran war. Brent crude fell 1.12% to US$103.60 a barrel, while West Texas Intermediate slipped 0.38% to US$96.09.
Australian Market Outlook
Australian shares face an uncertain opening on Wednesday as investors assess mixed overnight trading on Wall Street and await results from the US midterm elections.
The Reserve Bank raised the official cash rate by 25 basis points to 4.85% on Melbourne Cup day, marking its fifth increase this year as inflation remains above the central bank’s target. The decision takes the cash rate to its highest level since 2008.
The recovery in US semiconductor stocks could provide some support to local sentiment, although concerns about artificial intelligence investment and higher domestic borrowing costs may limit gains.
The Australian Bureau of Statistics will release monthly household spending data at 11.30am AEDT, providing further insight into domestic consumer demand following the RBA’s latest rate increase.
In the US, job vacancies exceeded market expectations, while October employment change figures are scheduled for release at 12.15am Thursday AEDT.
Investors will also monitor developments in the Iran war, with falling oil prices reflecting renewed hopes of diplomatic progress.
The outcome of the US midterm elections will remain a key focus for global markets as investors assess potential changes to US fiscal and trade policy.
