Midterm US elections, earnings and jobs data loom for AI-wary stock market
SPY•US midterm elections, a heavy slate of company earnings and Friday’s October jobs report are set to test investors next week after AI-related stocks weakened. The S&P 500 fell 1.8% and the Nasdaq Composite 2.9% on Friday; Apple, AMD and Palantir are among companies due to report.
1. Election risks for AI
Tuesday’s elections will determine whether Democrats take control of either chamber of Congress. A Democratic sweep is expected to bring more scrutiny to data centers and could affect the outlook for AI regulation, while investors are also watching state and local races tied to data-center development.
2. Earnings and jobs ahead
Apple reports Monday, with AMD, Qualcomm and Palantir also due to report next week. With more than half of S&P 500 companies having reported third-quarter results, earnings were on pace to rise 31.6%, according to LSEG IBES data. Friday’s October employment report will provide a read on job growth after the Federal Reserve held rates steady and upgraded its assessment of the economy.
3. AI concerns weigh
Recent results from Alphabet and Amazon and a nearly 29% Friday drop in Intel shares intensified concerns about the financing and returns needed to support AI investment. The S&P 500 was up more than 10% for the year, while energy, financials, utilities and healthcare had gained in October.
