Midterm elections and AI spending fears set stage for volatile week ahead
Wall Street faces a turbulent week as investors brace for the US midterm elections and fresh concerns over the sustainability of AI infrastructure spending. The Nasdaq and S&P 500 ended the previous week lower after a sharp Friday reversal, driven by fears that a Democratic victory could trigger stricter AI regulation and opposition to data center construction. Key corporate earnings from Apple, AMD, and Pfizer are scheduled alongside the monthly jobs report, which is expected to show strong hiring but limited wage growth. While some analysts see potential gridlock as stabilizing for bonds, others warn that political uncertainty could exacerbate volatility in tech, defense, and crypto sectors.