Wall Street ended Tuesday’s Election Day session with a split verdict. A rebound in semiconductor shares lifted the S&P 500 and Nasdaq to their first gains in four sessions, while a slide in Apple kept the Dow Jones Industrial Average in the red. Investors spent the day waiting for the midterm results that will decide control of Congress.
The numbers
The Nasdaq Composite rose 207.65 points, or 0.83%, to 25,372.01, and the S&P 500 gained 27.52 points, or 0.36%, to 7,568.92, while the Dow fell 197.26 points, or 0.38%, to 51,786.72. The advance ended a rough stretch for technology. The S&P 500 and Nasdaq both snapped three-day losing streaks.
Chips lead the recovery
The move began where the damage had been worst. The Philadelphia Semiconductor Index had lost 11.6% over the previous three sessions. It rose 2.6% on Tuesday, helping the S&P 500’s technology sector climb 1.3%.
Big names took part. Advanced Micro Devices gained about 4% ahead of its quarterly results, Broadcom rose more than 3%, and Nvidia and Micron each advanced more than 2%. Even Intel found buyers. Its shares gained 1% after falling 37% during their three-day slump.
Apple weighs on the Dow
Apple was the day’s main drag. The stock fell nearly 2% after its margin forecast disappointed investors and quarterly iPad sales came in below analysts’ estimates. Because the Dow is a price-weighted index, a heavy stock like Apple can pull it lower even when the broader market is rising.
A narrow rally
The headline gains hide a mixed picture underneath. Only 189 S&P 500 stocks rose, while 313 fell, showing that the rebound was led by a small group of large technology names. The market is also still below its peak. The S&P 500 remained about 3% below its October 6 record despite Tuesday’s advance.
Elsewhere, some earnings reports caused sharp swings. Shopify tumbled about 9% after missing estimates on merchant volume and subscription profit, while Pfizer traded roughly flat despite beating forecasts and raising its outlook. European markets were weaker, with the STOXX 600 declining 0.6%.
What history says about election days
Market watchers are used to this sort of calm before the vote. The S&P 500’s gain was roughly in line with its 0.44% average on midterm election days going back to 1970. That suggests investors did not make large bets on the outcome before polls closed.
Options markets show more concern about what comes next. The one-day VIX reading jumped 27.26% to 22.78, its highest close since October 16, implying a move of about 1.44% for Wednesday. The broader volatility gauge was steadier. The VIX fell 0.26 points to 20.89.
Why the election matters
Analysts say the political stakes for markets are mostly indirect. Control of Congress affects fiscal policy, regulation and the government’s approach to the technology industry. A divided result could limit sweeping policy changes, while a one-party sweep may increase uncertainty around areas such as AI regulation and data-centre rules. Even so, stocks usually react more strongly to earnings and interest rates than to politics.
After the bell: AMD steals the show
Attention shifted quickly after the close. AMD reported third-quarter results and forecast faster growth for 2027, and its shares jumped in extended trading, offering the chip sector another boost. Meta also raised $15 billion in a bond sale to fund AI infrastructure, a reminder of how much capital the industry is consuming.
What to watch
On Wednesday, the focus will be the election outcome and the market’s response. Later in the week, the US jobs report on Friday could shape expectations for the Federal Reserve’s next move. For now, investors have shown they are willing to buy chip stocks after a deep selloff, but the narrow breadth suggests confidence remains fragile.
