Wall Street opened Tuesday's session on a split note as Americans voted in the midterm elections, with technology shares recovering some ground while the Dow Jones Industrial Average slipped at the opening bell.
At the open, the S&P 500 rose 7.77 points, or 0.1 percent, to 7,549.17, and the Nasdaq Composite gained 98.65 points, or 0.39 percent, to 25,263.01. The Dow Jones Industrial Average fell 206.75 points, or 0.4 percent, to 51,777.23.
The firmer start for the broader market came as crude oil prices extended their recent decline, easing some of the inflation pressure that has weighed on households and businesses. Brent crude, the international benchmark, was trading around $105.78 a barrel in early Tuesday trade, while US West Texas Intermediate was near $97.50.
Monday's mixed close
Tuesday's open followed a mixed Monday session. The Dow rose 221.88 points, or 0.43 percent, to 51,992.19, while the S&P 500 fell 37.80 points, or 0.50 percent, to 7,542.27, and the Nasdaq Composite dropped 272.68 points, or 1.07 percent, to 25,164.32.
The Nasdaq 100 has now closed more than 10 percent below its all-time closing high, putting the tech-heavy index in correction territory as investors grow wary of the huge sums Big Tech companies are spending on artificial intelligence infrastructure with little evidence yet of matching returns.
What is driving the market
Three forces are shaping trading this week. First, hopes for a diplomatic opening between the United States and Iran sent oil prices sharply lower on Monday, with Brent crude falling about 7.6 percent to $104.77 a barrel — a move that also pushed retail gasoline prices down to about $4.12 a gallon.
Second, earnings season continues to test the market's patience. Apple shares slipped ahead of its quarterly report, joining other large technology names whose results failed to impress investors, while Oracle fell after announcing plans to raise $20 billion.
Third, the midterm elections themselves are in focus. Investors are watching whether control of Congress changes, since that would shape tax, spending and regulatory policy for the rest of President Donald Trump's term. The yield on the 10-year US Treasury note stood at about 4.91 percent on Tuesday morning.
Results due Tuesday from companies including AMD, Super Micro Computer, Pfizer, Block and Amgen will give traders a fresh read on demand across chips, healthcare and payments.
This article is for information only and is not financial advice.
Sources: Reuters via The Business Times, The Economic Times, TipRanks, Morningstar / Dow Jones.
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