Nvidia and Broadcom lift Wall Street as Apple dips on AI costs
Tech stocks pushed the S&P 500 up 0.4 per cent on Tuesday.
The short version
- Nvidia rose 2.3 per cent and Broadcom gained 3.1 per cent.
- Apple slipped 1.9 per cent as memory chip costs climbed.
- Higher chip prices are cutting into Apple profit margins now.
Why it matters to you. For your business, shifting material costs in Tech hardware can ripple into higher prices for the computers and servers you buy for your office.
A rebound for influential Big Tech stocks lifted the U.S. market on Tuesday despite a drop for Apple and mixed trading elsewhere on Wall Street, according to BNN Bloomberg. The S&P 500 rose 27.52 points to 7,568.92, even though most of the stocks within the index fell.
The Dow Jones Industrial Average dropped 197.26 points, while the Nasdaq composite climbed 207.65 points. Nvidia, the giant chip designer, rose 2.3 per cent and led the S&P 500 upward. Close behind was another chip company, Broadcom, which rose 3.1 per cent.
Also boosting the market were Microsoft, Amazon and Meta, which owns Facebook and WhatsApp, as all three rose more than 2 per cent. Apple, the maker of iPhones and Mac computers, felt the squeeze from the artificial intelligence boom. Memory chips for computers have become more expensive because of the demand created by data centers.
Those higher costs are hitting Apple, which said it expects to make less profit from each dollar of revenue during the final three months of this year. That sent Apple stock down 1.9 per cent. DuPont rallied 8.6 per cent for one of the biggest gains in the S&P 500.
Meanwhile, the yield on the 10-year Treasury rose to 4.96 per cent from 4.91 per cent.
Photo: Coolcaesar, CC BY-SA 4.0, via Wikimedia Commons
