Apple slips as AI costs rise

Apple shares fell on Tuesday despite a quarterly report that beat analyst estimates.

The stock dropped 1.8% in a market that moved in mixed directions. The S&P 500 index rose 0.3%, while the Dow Jones Industrial Average lost 286 points. The Nasdaq composite gained 0.7% as of 10:15 a.m. Eastern time.

Apple is facing higher costs for memory chips. The price of these components has risen due to heavy demand from companies building artificial intelligence data centers. The company warned that its profit per dollar of revenue would decline in the final three months of the year. This forecast weighed on the stock even though it reported stronger profit and revenue for the latest quarter than expected.

Other technology stocks moved in the opposite direction. Nvidia rose 2.9% and was the largest contributor to the S&P 500's gain. Broadcom added 3.1% and Advanced Micro Devices climbed 4.6%. These moves helped offset losses in other sectors.

Palantir Technologies fell 4.6% on Tuesday. The software company reported better than expected profit. It noted that it earned more revenue from U.S. commercial clients than from the U.S. government for the first time. U.S. commercial revenue increased 148% from the prior year.

Revvity stock jumped 11.2%, marking one of the biggest gains in the S&P 500. The life sciences company exceeded analyst expectations. CEO Prahlad Singh stated that end market conditions are continuing to improve. Celanese rose 1.3% and DuPont added 4.9% following strong summer profit reports.

The 10-year Treasury yield rose to 4.96% from 4.91% late Monday. This followed a report showing more job openings at the end of September than economists predicted. In the oil market, Brent crude prices swung widely. The price climbed above $107 per barrel before falling below $101. It last traded at $103.37, down 1.3%. In global markets, South Korea's Kospi index dropped 3.6% on losses for Samsung Electronics and SK Hynix. Australia's benchmark interest rate was raised for the fifth time this year, and its stocks rose 0.3%.