Wall Street rebounded Monday after a rough stretch for technology shares last week. The Nasdaq Composite rose more than 1% by the close, the S&P 500 added 0.4%, and the Dow Jones Industrial Average finished essentially flat. Among individual movers, Nvidia gained 1.4%, Tesla jumped 3.8%, and Alphabet advanced about 1%. In premarket trading Tuesday, however, chip stocks came under renewed pressure, with Micron down 2.2%, Intel off 1.2%, and Qualcomm slipping modestly.
Commodity markets moved on geopolitical news. Oil futures rose more than 2% after reports of Houthi attacks on Saudi Arabian infrastructure, while gold slipped nearly half a percent. Elsewhere, a widely followed survey of US homebuilder sentiment reportedly hit its weakest level in roughly 14 and a half years in October, underscoring ongoing strain in the housing sector amid elevated borrowing costs.
Markets are also looking ahead to the Federal Reserve's next interest rate decision, scheduled for Wednesday, October 28. The Fed raised its target range by a quarter point in September, its first increase since 2023, and minutes from that meeting suggested most officials saw another hike as likely appropriate by year end. Since then, weaker September payroll data has shifted market expectations: traders now largely expect the Fed to hold its benchmark range at 3.75% to 4.00% this month, with the odds of a move more concentrated around the Fed's December meeting instead.
Taken together, the day's trading reflected a market trying to balance a rebound in AI-linked technology shares against renewed geopolitical risk from the Gulf and lingering softness in US housing data.
Watch the Federal Reserve's rate decision on October 28, and whether Tuesday's chip stock weakness extends into a broader pullback.
Did the Fed raise rates recently?
Yes, the Fed raised its target range by a quarter point on September 16, 2026, its first hike since 2023, and its next decision is due October 28.
Why did chip stocks fall Tuesday morning?
Micron, Intel, and Qualcomm came under renewed pressure in premarket trading after last week's broader technology selloff.