Nasdaq rebounds as chip stocks bounce, Dow dragged lower by Apple

The Nasdaq Composite rose on Tuesday as investors moved back into key technology stocks after recent pressure and geared up for U.S. midterm election results.

The tech-heavy index jumped 0.8%, recouping some of its latest losses. The Nasdaq-100 also rose 0.6% but still traded in correction territory, still down more than 10% from its recent high. The S&P 500 climbed 0.4%, while the Dow Jones Industrial Average traded down 217 points, or 0.4%, weighed down by Apple shares.

Apple fell 2% after the iPhone maker issued a disappointing margin forecast late Monday and iPad sales in the fiscal fourth-quarter missed the Street’s estimates.

Conversely, shares of chipmakers saw gains. Advanced Micro Devices — which releases its third-quarter results after the bell — gained 4%, while Broadcom rose more than 3% and Micron Technology, Nvidia and Intel each gained nearly 3%.

Tuesday’s advance marks a reversal from the pullback seen Monday, which sent the Nasdaq down more than 1% and extended a recent retreat in the Nasdaq Composite and S&P 500 to a third day.

While semiconductor makers — and others tied to artificial intelligence — showed signs of recovery Tuesday, Shawn Snyder of Potomac Fund Management believes the market is not out of the woods.