Wall Street braces for US election fallout as AI bets and rate path collide
Wall Street investors are focused on Tuesday's US midterm elections, as political outcomes could impact government spending, tech regulation, the dollar, and Treasury bonds, intersecting with market bets on AI and interest rates. The elections come as US stocks face pressure from doubts about AI investment returns, with tech shares falling after earnings. Investors also await results from Apple, AMD, and Palantir, plus the monthly jobs report, for clues on economic strength and potential rate hikes. A Democratic win could increase scrutiny of data centers and tech companies, potentially pressuring the dollar and AI stocks. Meanwhile, the S&P 500 fell 1.8% on Friday, and markets price a 76% chance of a rate hike in December.