[New York Stock Market] Mixed Close on Midterm Election Day... Nasdaq Rises as Semiconductor Stocks Rebound

Oil Prices Fall on Hopes for Progress in U.S.-Iran Talks
JPMorgan: "AI Stocks Could Face Selling Pressure if Democrats Take Both Chambers"

The three major U.S. stock indexes closed mixed on Nov. 3, local time, the day of the U.S. midterm elections. The Nasdaq rebounded as buyers moved into technology stocks that had recently been declining, while the Dow fell after Apple issued a disappointing profit outlook.

The Dow closed at 51,786.72, down 197.26 points (0.38%) from the previous session. The S&P 500 gained 27.52 points (0.36%) to 7,568.92, while the tech-heavy Nasdaq Composite rose 207.64 points (0.83%) to close at 25,372.01.

New York Stock Exchange. New York, U.S. = Special Correspondent Hwang Yoonjoo

Semiconductor stocks and Apple drove the market's direction that day. Apple fell nearly 2% after reporting results for the fourth quarter of fiscal 2026 following the market close the previous day. iPad revenue came in below market expectations, and its outlook for future profitability also fell short of expectations.

Semiconductor stocks, by contrast, all rose. AMD, which was due to report its third-quarter results after the market close that day, gained more than 3%, while Broadcom rose 3%. Micron Technology and Nvidia each gained more than 2%. The gains were seen as a sign of bargain buying focused on semiconductor stocks, following the previous day's sell-off in technology stocks.

However, analysts say it is too early to conclude that the correction in artificial intelligence (AI)-related stocks is over. Sean Snyder, an economist at Potomac Fund Management, told CNBC, "Concerns over the cost of raising capital and the amount of debt financing needed will persist for quite some time."

He also suggested that stocks tied to AI infrastructure investment may be nearing oversold territory. "They could fall another 4% to 5%, but, generally, declines stop around that level unless accompanied by a recession," he said.

Oil prices fell amid talk of possible progress in negotiations between the United States and Iran. January-delivery Brent crude closed at $103.60 a barrel on the ICE Futures Exchange, down 1.12% from the previous session. U.S. West Texas Intermediate (WTI) crude also fell 0.38% to close at $96.09 a barrel.

Investors' attention is focused on the results of the U.S. midterm elections held that day. The election will determine which party controls the House and Senate starting in January next year. Prediction markets put the odds of Democrats regaining a Senate majority at about 75%.

The election results could also affect the stock market's near-term direction. JPMorgan said this week that a Democratic sweep of both chambers could increase downward pressure across the stock market. It warned that if markets have not sufficiently priced in such an outcome, selling could intensify, particularly in AI-related stocks.

By contrast, the bank forecast that stocks could rise in the short term if Republicans retain their Senate majority or hold on to both chambers.

The market is also watching the possibility that a Democratic majority in Congress could lead to greater investigations and oversight of the Trump Administration. Major industries, including defense, AI and health care, could be affected by a shift in congressional power.

However, some analysts say that easing uncertainty itself could support stocks, regardless of the election outcome. Snyder said, "AI-related stocks have already taken a substantial hit," adding, "Given that uncertainty over the midterm elections would also be lifted, a relief rally could occur regardless of the results."

This content was produced with the assistance of AI translation services.