S&P 500 rises 0.4% as Nvidia and AI stocks rally despite Apple decline

The S&P 500 rose 0.4% on Tuesday, supported by a rally in Nvidia and other artificial intelligence (AI) stocks, according to thebusinessjournal.com. This gain occurred despite a decline in Apple shares and mixed performance elsewhere on Wall Street.

While the Dow Jones Industrial Average fell 197 points, or 0.4%, the Nasdaq composite climbed 0.8%, reflecting the uneven market activity. Nvidia’s stock increased 2.3%, making it the largest contributor to the S&P 500’s upward movement, followed by Broadcom, which rose 3.1%.

Several companies investing heavily in AI also helped boost the market. Apple, traditionally seen as less dependent on AI, experienced a 1.9% drop in its stock despite reporting stronger profit and revenue than expected for the latest quarter. The decline was attributed to higher memory chip costs due to AI data center demand, which Apple said would reduce its profit margin in the final quarter of the year.

Palantir Technologies’ stock fell 1.6% even though it reported better profits than anticipated. The company noted that its U.S. commercial revenue surged 148% year-over-year, surpassing income from U.S. government contracts for the first time.

These market movements coincided with midterm elections where issues like the rising cost of living and AI were significant to voters across party lines, as noted by thebusinessjournal.com.