Midterm elections, earnings and jobs data loom for AI-wary market
SPY•US midterm elections, earnings from Apple, AMD and other companies, and Friday’s October jobs report are set to test investors after concerns over AI spending weighed on stocks. With about half of the S&P 500 reporting, third-quarter earnings were on pace to rise 31%.
1. Election implications
Tuesday’s elections will determine whether Democrats take control of Congress. Investors are watching for possible scrutiny of data-center construction and AI regulation, as well as potential effects on defense, healthcare, banks and crypto firms. A Democratic sweep is expected to bring more scrutiny, though the article says investors doubt legislation would pose serious risks to AI investment.
2. Earnings and jobs
Apple reports Monday, while AMD, Qualcomm and Palantir are among the other companies due to report. The October employment report is due Friday, after the Federal Reserve held rates steady and upgraded its assessment of the economy. One strategist said a lack of job growth remains a gap in the strong economic-growth narrative.
3. Market backdrop
About half of S&P 500 companies had reported third-quarter results, with earnings on pace to rise 31%, according to LSEG IBES data cited in the article. Alphabet shares fell more than 12% Thursday after its results raised concerns about AI investment spending. The S&P 500 was up about 1% in October and more than 12% for the year.
