North American stocks wobble as Apple slides ahead of midterm elections

North American equity markets were mixed on Tuesday morning, with the S&P 500 gaining 0.2% in early trading while the Dow Jones Industrial Average slipped 0.4% and the Nasdaq rose 0.5%. Apple Inc. led declines, dropping 3.4% after the company warned that higher memory-chip costs tied to AI data-center demand would compress profit margins in the final quarter of the year, despite reporting stronger-than-expected quarterly revenue and earnings.

Analysts noted that the upcoming U.S. midterm elections are adding volatility, as some investors fear a Democratic sweep of Congress could bring tighter regulation of artificial-intelligence technologies. President Donald Trump remains in office and retains veto authority, a factor Wall Street views as a moderating influence.

Historical data cited by Edward Jones analyst Brock Weimer shows the S&P 500 has posted positive returns in the six months following every midterm election since 1970, suggesting a longer-term resilience.

Technology stocks showed mixed performance. Nvidia rose 3.1% and was the biggest upward driver for the S&P 500, while CoreWeave gained 2.6%. Palantir Technologies fell 4.2% despite beating profit forecasts and reporting a 148% jump in U.S. commercial revenue.

On the broader market, Canadian shares slipped about 0.75%, with Shopify down 9% after mixed earnings. European and Asian indexes were also mixed, and South Korea’s Kospi fell 3.6% after losses at Samsung Electronics and SK Hynix. In commodities, Brent crude hovered around $103.80 per barrel after fluctuating between $101 and $107 amid ongoing uncertainty over the conflict with Iran.

Overall, investors remain focused on corporate earnings and macroeconomic conditions, including high inflation and elevated interest rates, as they assess the market’s direction ahead of the election results.