U.S. stocks traded unevenly on November 2 as pressure on technology shares weighed on the Nasdaq while the Dow Jones Industrial Average edged higher. Investopedia’s market recap reported that the Nasdaq Composite fell 1.1%, the S&P 500 declined 0.5%, and the Dow gained 0.4%. Investors were balancing concerns about valuations and spending by artificial-intelligence companies against expectations for major technology earnings and developments in the Middle East that could affect energy prices and market sentiment.
Apple reported quarterly results after the market closed, with revenue narrowly exceeding Wall Street expectations. The Wall Street Journal said the company reported 12% year-over-year revenue growth for its September quarter and a gross margin of 47.9%, both slightly ahead of analyst estimates. A separate WSJ market update put revenue at $114.5 billion, compared with a FactSet analyst consensus of $113.4 billion. Investors nevertheless focused on slower growth in the high-margin services business and whether price increases could continue to protect margins.
The Wall Street Journal reported that Apple shares were down about 3% in after-hours trading as the company’s earnings call wrapped up. Investors were assessing the margin outlook, services growth and cost pressures rather than revenue alone. Sales of the iPhone Duo were not included in the September-quarter results because the device went on sale after the quarter ended. Management’s comments about product supply and future costs therefore remain important to expectations for subsequent quarters.
Oil prices fell as investors considered signs that the United States and Iran might pursue diplomacy. Investopedia reported that West Texas Intermediate crude futures were down about 8% at $95.80 a barrel during the session. Lower energy prices can ease some inflation concerns, but they did not prevent technology shares from weakening later in the day. Markets continued to weigh geopolitical risks against corporate earnings and the potential return on large investments in artificial intelligence.
After a difficult October for the Nasdaq, investors continued to reassess valuations and growth expectations for companies tied to artificial intelligence. Investopedia reported that the S&P 500 technology sector fell 2.7% on Monday and semiconductor shares broadly declined. The market debate is not limited to any single earnings report. It also concerns whether substantial spending on data centers and chips can translate into durable revenue and cash flow. A one-day decline does not by itself prove that AI demand is weakening, but it shows that investors are demanding clearer evidence that earnings can justify elevated valuations.