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Wall Street closed higher on Tuesday, but most stocks fell. The Nasdaq gained 0.83%, while the S&P 500 rose 0.36%. The Dow lost 197 points as Apple fell 1.9%.

Nvidia helped lift the market. Its shares gained 2.3% as buyers returned to chip stocks after recent losses. But most S&P 500 stocks closed lower. A small group of large tech firms drove much of the day's gains.

Then AMD gave Wall Street fresh news after the bell. The chipmaker reported record sales of $13.4 billion. Its data-center business grew 97%, and shares jumped in early after-hours trading.

The gains came as Americans voted in the midterm elections. New data also showed that U.S. job openings rose to 7.5 million. Now investors face fresh jobs data, more chip earnings, and the results of Tuesday's vote.

Tuesday, November 3

Three forces shaped Tuesday's market. Big Tech stocks bounced back after recent losses. Nvidia, Microsoft, and Amazon helped lift the Nasdaq, even as most stocks fell. Apple moved the other way. The firm warned that rising chip costs could hurt profits in the months ahead.

Fresh jobs data also showed that firms still had millions of open roles, while layoffs stayed low. After the close, AMD reported strong earnings and raised its sales forecast. The result was a market where a few large tech firms drove the gains, while many other stocks struggled.

Nvidia gained 2.3% on Tuesday after days of losses. AMD, Broadcom, and Micron also rose as buyers returned to chip stocks. The gains helped lift the Nasdaq 0.83%, despite weakness across much of the market.

But the rebound came after a steep selloff. Investors have grown wary of the vast sums that tech firms are spending on AI. Google, Amazon, and Intel all faced heavy selling last week. The main concern is cash. New data centers cost billions to build. Firms must buy chips, servers, and power before those sites can earn money.

Nvidia and other chipmakers gain when firms buy more hardware. But the firms buying those chips still need to prove that their spending will lead to more profits. Tuesday showed that demand for AI stocks remains strong. It did not settle the concerns about high costs.

AMD delivered one of the week's strongest earnings reports after Tuesday's close. Sales rose 45% to a record $13.4 billion. Its data-center business grew 97% to $8.5 billion as firms bought more chips for AI and cloud systems.

AMD also reported adjusted profit of $2.09 per share, up 74% from a year ago. The chipmaker expects sales near $17 billion in the fourth quarter. That would mark growth of about 66% from a year earlier.

Its shares jumped more than 8% in early after-hours trading. The results matter because AMD is one of Nvidia's main rivals in AI chips. Strong sales from both firms show that demand for AI hardware remains high.

But there is a key difference between selling chips and buying them. Chipmakers can earn money as soon as customers place orders. The firms building data centers must then find ways to earn enough from those sites to cover their costs.

That is why investors are watching both sides of the AI boom so closely. AMD gave buyers proof that chip demand remains strong. The next test is whether its profit growth can keep pace.

Apple fell 1.9% on Tuesday despite beating earnings forecasts the night before. The firm reported sales of $114.48 billion, helped by strong iPhone demand. But investors focused on rising costs.

Apple warned that memory chips could become more expensive, putting pressure on profit margins during the holiday quarter. That means Apple may keep selling more devices but earn less profit from each dollar of sales.

The warning hurt its shares and weighed on the Dow. Apple's decline showed how fast Wall Street can turn on a firm that beats forecasts but warns of higher costs.

Strong sales still matter. But investors also want to know how much money a firm can keep after paying for the goods it sells. Apple showed that even a strong earnings report may not be enough when costs are rising.

Fresh data showed that U.S. firms had 7.52 million open jobs in September. That was up from 7.19 million in August and above Wall Street's forecast. But the rest of the report was less dramatic. Hiring held near 5.4 million, while layoffs remained low at about 1.6 million.

Workers also quit more jobs than in the prior month. The report points to a job market where firms are still seeking workers, but hiring has not surged. That matters for the Fed.

The central bank wants inflation near 2%. A job market that stays firm can support wages and spending. But if hiring slows too much, the economy could lose speed. The Fed held rates at 3.75%–4.00% last week. Friday's jobs report will give investors another look at whether firms are still adding workers and how fast wages are rising.

Americans voted in the midterm elections on Tuesday. The results will decide which party controls Congress and help shape taxes, federal spending, and new laws. Stocks traded through the day before the full results were known.

Investors will now watch whether one party wins control of both chambers or whether Congress remains split. A split Congress could make it harder to pass major tax or spending plans.

One-party control could make it easier to pass new laws, though the effects would depend on what those laws contain. For markets, the key issue is what changes after the vote. Stocks may react as the results become clear. But company profits, interest rates, and economic growth will still play a major role.

Wednesday brings fresh data on U.S. jobs and business activity. The ADP jobs report arrives at 8:15 a.m. ET. It will show how many workers private firms added in October. At 10:00 a.m. ET, the ISM services report will show how firms across much of the economy performed.

Investors will watch new orders, hiring, and prices. Strong data could support company profits. But it could also give the Fed more reason to keep rates high. Weak data could ease rate fears while raising concerns about growth. Qualcomm and Arm are also due to report earnings, giving Wall Street another look at demand for chips. The reports will help show whether Tuesday's tech rebound has room to grow.

Tuesday showed that Big Tech can still lift the stock market. Nvidia rose. Microsoft gained. AMD delivered record sales after the bell. Yet most S&P 500 stocks fell. That split matters because a few large firms can push the major indexes higher even when many other stocks are weak.

Apple showed the other side of the market. Strong sales were not enough to lift its shares once higher costs came into view. The economy adds another test. Job openings rose to 7.52 million, but hiring remained steady. The Fed is still trying to bring inflation down to 2%.

If the job market stays firm, rates may remain high. That could raise costs for firms and households. Investors must also weigh the midterm results and a busy week of earnings. The lesson is simple: Big Tech is still growing, but Wall Street wants proof that higher sales can lead to more profit.

Nvidia helped lift the Nasdaq. Apple pulled the Dow lower. AMD showed that demand for AI chips remains strong. Now jobs data, chip earnings, and election results will help shape the next move. Stocks have bounced back. The next test is whether the gains can spread beyond a few large firms.