Apple Margin Warning and Palantir Selloff Test Fragile U.S. Tech Trade

Apple and Palantir became the latest focal points in a fragile U.S. technology trade Tuesday, as investors parsed earnings details ahead of the midterm-election results and another major semiconductor report.

Apple’s margin warning weighs on shares

Apple shares fell 4.5% in premarket trading, according to Reuters, after the company warned that rising memory-chip costs would pressure its holiday-quarter gross margin. The report also said Apple posted weaker-than-expected fourth-quarter iPad sales, while iPhone sales provided a brighter spot and Greater China revenue was a miss. Reuters

The reaction adds Apple to a broader group of large technology companies whose results have failed to reassure investors during a renewed reassessment of artificial-intelligence spending and valuation. A separate market report put Apple’s premarket decline at 3.86% and highlighted the margin outlook alongside the iPad weakness. The News & Observer

Palantir falls despite upbeat outlook

Palantir Technologies also declined after reporting third-quarter results that beat expectations and raising its full-year guidance. Reuters said the shares fell 6.3% in premarket trading as investors focused on a sharp deceleration in new contract bookings and valuation concerns. Reuters

The contrasting reaction—strong reported results but weaker share performance—underscored the market’s heightened sensitivity to forward indicators. Palantir’s revenue forecast for the final three months of the year was above estimates, but that did not offset investor concerns about the pace of bookings growth. Yahoo Finance

Market backdrop remains unsettled

The Nasdaq-100 closed more than 10% below its record closing high Monday, entering a correction as investors questioned whether elevated AI spending is producing sufficient returns, Reuters reported. Nvidia rose 1.6% in premarket trading Tuesday after four consecutive declining sessions, while AMD gained 2.8% before its earnings release. Reuters

The broader session also carried political and macroeconomic uncertainty. U.S. voters were casting ballots in the midterm elections, while October’s ISM manufacturing PMI came in at 55.5, indicating solid factory activity; a revised S&P Global manufacturing reading of 54.9 came with higher input-cost pressure. Yahoo Finance

What to watch

Investors will focus on AMD’s results and fourth-quarter outlook after the closing bell, with the market reaction likely to hinge on forward guidance as much as on the reported quarter. Election results and ballot initiatives affecting pharmaceuticals, housing and AI data centers could also shape the next session’s sector moves. Yahoo Finance