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.

Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, traded slightly higher ahead of Tuesday's open, after the stock market ended sharply mixed Monday. Meanwhile, Amazon AMZN, Broadcom AVGO, Nvidia NVDA, Palantir Technologies PLTR and Tesla TSLA were big movers on the stock market Monday.