US midterm elections, a heavy slate of earnings and the October jobs report will test investors next week as concerns about AI investment persist. Apple, AMD and Palantir are among the companies due to report.
Recent earnings setbacks at Alphabet and Amazon, alongside a nearly 29% Friday drop in Intel shares, intensified concerns about the financing and returns supporting AI investment. The S&P 500 fell 1.8% on Friday, while the Nasdaq Composite lost 2.9%.
Tuesday’s midterm elections will determine whether Democrats take control of Congress. A Democratic sweep is expected to bring more scrutiny of data centers and AI, while investors are also watching local and state races for implications for data-center development. Election results could also affect defense, healthcare, banks, crypto firms and fiscal spending.
Apple reports Monday, with AMD and Palantir also among the major companies 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%. Friday’s October employment report will provide a read on job growth after the Federal Reserve held rates steady and the economy grew at its fastest pace in a year in the third quarter.
