Chip stocks rebound as Apple weighs on the Dow
Technology shares opened higher Tuesday, but the recovery is uneven ahead of AMD earnings and election results.
The Nasdaq Composite opened higher Tuesday as chip stocks recovered some of their recent losses, while Apple weighed on the Dow Jones Industrial Average. The opening move reverses part of Monday's technology decline, rather than erasing it.
In CNBC's 9:41 AM ET update, the Nasdaq was up about 0.4% and the S&P 500 about 0.1%, while the Dow was down about 0.4%. Micron rose about 4%; Nvidia, AMD, Broadcom and Intel each gained around 3%. Those are an early-session snapshot, not closing returns.
The rebound follows a difficult stretch for semiconductor shares. The Nasdaq-100 ended Monday more than 10% below its record closing high, the conventional threshold for a correction. A positive morning does not by itself reverse that decline.
Apple moved in the other direction after its holiday-quarter margin forecast overshadowed strong September-quarter sales. The concern is that rising memory costs will take a larger share of revenue, even if sales continue to grow.
AMD's results are due after the close. Its outlook will provide another reading on chip demand after Monday's 7.5% share-price fall. Investors will also be waiting for U.S. midterm election results, which cannot be read from an early stock-market move.
For now, the distinction is between a rebound and a broader recovery: chip shares have found buyers this morning, but the earnings and election tests are still ahead.
