Investors usually watch corporate earnings. This week, campaign promises demanded their attention too.
What happened
The S&P 500 lost 2.7% for the week, its worst weekly performance since April last year. On Thursday, the Nasdaq fell more than 1,400 points and entered a correction. Fears of restrictions on data-center construction intensified the selling. Elections were not the only concern: expensive borrowing and stretched technology valuations had already worried investors.
A proposal is not an order
Sen. Bernie Sanders called for a national data-center moratorium. Gina Hinojosa promised to pause new approvals in Texas. A correction to my November 5 post: I incorrectly called her the sitting governor. She is the governor-elect and has not yet taken office. Her campaign pledge is not an operative order.
Oil tells a different story
Brent fell more than 16% for the week. Hopes of a U.S.–Iran diplomatic agreement and some unwinding of the war premium contributed. But risks of renewed U.S. strikes and supply disruption remained; those fears supported prices on Friday. Cheaper oil does not guarantee an immediate or equivalent decline in gasoline prices.
Borrowers should stay cautious
Strong hiring data increased expectations of a December Fed rate hike. Radiocor reported a CME FedWatch probability of about 77% after the release. That was a market-implied estimate at the time, not a Federal Reserve commitment.
My view
The economics of artificial intelligence depend on more than chip sales. Land, water, electricity and local consent have a price too. Political restrictions could make construction slower and more expensive. That is a risk to investors’ expectations, not proof that the industry is finished.
Practical takeaways
- Check whether different retirement funds depend on the same large technology companies. More fund names do not necessarily mean more diversification.
- Keep money needed for near-term essential spending out of a bet on a quick equity rebound.
- Compare the full cost of mortgage offers and what you can afford now. Do not rely on an inevitable rate cut.
- Measure gasoline savings at the pump rather than assuming oil futures translate directly into your budget.
Next to watch
BLS schedules October consumer-price data for Tuesday, November 10, at 8:30 a.m. New York time (EST). RFE/RL reports that Ukraine–Russia–U.S. talks in Abu Dhabi are planned for November 10–11. Scheduled talks are not an agreement already reached.
Sergey Danilov
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