Nasdaq ends higher as AI heavyweights rebound ahead of midterm results

What happened

The Nasdaq ended higher on Tuesday as AI-related technology shares rebounded ahead of US midterm results. Nvidia rose 2.3%, Micron gained 2.6%, and Microsoft and Amazon each rose more than 2%, while Apple fell 1.9% after warning that rising memory-chip costs would pressure its holiday-quarter gross margin.

Confirmed

Global impact / market context

The split shows how sharply investment expectations differ within technology: chipmakers rose as buyers returned, while Apple fell because higher memory costs threaten profit per sale. If AI infrastructure spending continues to exceed near-term cash generation, concerns about spending costs could weigh on technology shares despite rebounds.

Analyst inference

The Nasdaq 100 had entered a correction, meaning it was more than 10% below its October 6 record close, amid worries that AI infrastructure investments are not yet producing cash quickly enough. The S&P 500 was down about 3% from its record but remained up over 10% in 2026.

Confirmed

What to watch

1. Apple’s next results could show whether rising memory-chip costs further reduce its holiday-quarter gross margin, which measures revenue left after direct production costs. Analyst inference
2. AMD’s quarterly report was due after Tuesday’s market close; its results could indicate whether chip demand is supporting sales as investors reassess AI spending. Confirmed
3. Watch whether AI infrastructure spending produces cash soon enough to ease concerns, since continued heavy costs without near-term returns could pressure technology valuations. Analyst inference

Evidence

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