The CNBC Investing Club says the tone of political debate around data centers is its main Election Day signal for stocks. The group has tracked rising opposition to data center development ahead of the midterms and is watching to see whether that rhetoric eases once voting ends.

Stocks were broadly higher on Tuesday, with the Nasdaq up roughly 1% and the S&P 500 gaining about half as much. Both indexes were recovering from three consecutive losing sessions, driven by selling in AI-related shares. Investors returned to semiconductor stocks and companies supplying power, electrical equipment and liquid-cooling systems. Eaton was among the names drawing attention after reporting strong quarterly results and raising its full-year outlook.

Apple shares fell about 2% after the company gave a weaker gross-margin outlook, citing higher memory-chip costs. The stock had reached a record high the previous Thursday, and its recent performance had outpaced Amazon, Meta Platforms, Microsoft and Alphabet. Apple shares later recovered some of Tuesday’s decline from their session low.

Treasury yields rose as bond prices fell, reversing a recent pattern in which investors sought the safety of bonds during selloffs in AI stocks. The move came as chip and other AI-related shares rebounded. Better-than-expected readings for job openings, factory orders and durable-goods orders may also have contributed. The week’s most closely watched economic release is Friday’s nonfarm payrolls report.

The Investing Club said the midterms could clear a political concern for the AI trade if opposition to data centers fades, though questions remain about how future expansion will be financed. The club also said it was holding back from investing a substantial portion of its portfolio’s cash while watching for a possible escalation in the Middle East after the election.

Among the companies scheduled to report after Tuesday’s market close were Advanced Micro Devices, Super Micro Computer, Amgen, Arista Networks, Booking Holdings and Block. Before Wednesday’s opening, semiconductor-industry supplier Qnity Electronics was due to report, alongside CVS Health, Cencora, Uber, Novo Nordisk, Kraft Heinz, McDonald’s and Stanley Black & Decker. Wednesday’s scheduled data releases included the S&P Global U.S. Services PMI and the ISM Services Index.

Sources: CNBC Markets.