The Dow handed over 0.5% in afternoon trade with Nvidia a big loser. The Nasdaq composite suffered a 1.8% drop, and the S&P 500 retreated 1%, with Palantir stock sliding nearly 9%. Small-cap stocks on Tuesday were spared the wrath, illustrated by the Russell 2000 index giving up 1.5%.

Analysts raise targets to $350 as orders hit $500B. Amazon secures GPUs for OpenAI in $38B deal. UAE export approved.

US stocks finished the first trading day of November mixed, with Big Tech names like Amazon (AMZN) and Nvidia (NVDA) rising near record-high levels, fueling a continued rally in the AI trade even as those gains weren't broadly distributed.

Dominant AI chip market leader Nvidia (NVDA 0.20%) recently became the first company to exceed a $5 trillion market cap, thanks to surging demand for AI infrastructure. But I don'

Amazon contributed to market strength as its shares gained more than 5% following a $38 billion multiyear deal with OpenAI that will deploy hundreds of thousands of Nvidia GPUs. The market’s strong start to the month follows a solid October, when the S&P 500 and Dow gained 2.3% and 2.5%, respectively, while the Nasdaq outperformed with a 4.7% rise.

“While Anthropic, the company behind the Claude AI chatbot, reiterated its commitment to Amazon, we see this move with Google speaking to the capacity-constrained AI and data center market, as well as prudently diversifying its exposure,” veteran fund manager Chris Versace wrote for TheStreet Pro.

In a landmark $38 billion partnership, Amazon Web Services (AWS) will provide massive cloud infrastructure to OpenAI, enabling the ChatGPT maker to scale its AI workloads using cutting-edge NVIDIA GPUs.

Nvidia shares rose after Amazon boosted AI investment and the chipmaker unveiled major partnerships with top South Korean firms.