US stocks on shaky ground as AI selloff, inflation data loom

US stocks face uncertainty next week after deep selling in the AI trade, triggered by Democratic victories in Tuesday's midterm elections that raised concerns about slowing data-center buildout. Investors await inflation data and tech earnings. The selloff on Thursday reflected fears that Democratic control of Congress and key governorships in data-center-heavy states like Texas could hinder AI infrastructure growth. Traders now see a 65% chance of a Fed rate hike in December, with the October CPI report due next week. CoreWeave, a cloud company central to AI financing concerns, reports earnings next week and could ease worries with cautious optimism. Tech has underperformed the S&P 500 over the past month by its largest margin since May 2002.