Stock market today: Live updates

The Nasdaq Composite fell on Tuesday following a winning day on Wall Street thanks to gains in artificial intelligence-linked names and renewed hopes of a Federal Reserve interest rate cut.

The tech-heavy benchmark lost 0.4%, while the S&P 500 hovered around the flatline. The Dow Jones Industrial Average outperformed, rising 205 points, or 0.5%.

Nvidia shares were down more than 4% after The Information reported, citing sources, that Meta Platforms was considering spending billions of dollars on Alphabet’s AI chips.

Monday marked a strong session for the three major averages. The S&P 500 gained about 1.6% on Monday, while the Nasdaq jumped 2.7% and recorded its best day since May 12 as major tech names rebounded after what’s been a tough month for the sector. The Dow closed higher by more than 200 points, or 0.4%, meanwhile.

Google parent Alphabet was a standout name in the previous session, ending the day 6.3% higher and scoring a new record high. Chipmaker Broadcom was the S&P 500’s biggest gainer after the stock surged more than 11%. Investors have rallied behind both companies, which are related through their high-performance, application-specific chips, or ASICs, businesses.

Although stocks saw some recovery from the sell-off from the previous week, the three U.S. indexes are still tracking for a losing month. AI stocks have been responsible for much of this year’s gains, and investors are questioning tech stock valuations and whether the market will see a year-end rally or a reversal in momentum.

The S&P 500 is down about 2% in November, while the Nasdaq has lost 3.6%. The 30-stock Dow has shed 2.3% month to date.

“You saw a lot of that washout, and it really started at the end of October as we had some liquidity that came out of out of the market,” Abby Yoder, U.S. equity strategist at JPMorgan Private Bank, said Monday on CNBC’s “Closing Bell” referring to the recent pullback.

“But within this technical-driven move in terms of the AI and tech-related names, you still had this really solid fundamental backdrop in terms of the AI story and the AI spending story,” Yoder continued. “Now, I think going forward, it sets up nicely as we head into the end of the year, but I think there’s going to be a little bit more of a discerning eye.”

Separately, traders continue to watch for any news that can affect the Federal Reserve’s upcoming monetary policy decision. Markets are pricing in a more than 80% chance of a quarter percentage point cut from the Fed in December, per the CME FedWatch Tool.

The probability has soared since New York Fed President John Williams said on Friday that there was room to lower rates “in the near term.” San Francisco Fed President Mary Daly told the Wall Street Journal on Monday that she supports lowering rates due to labor market concerns.