Wall Street’s postelection rally was erased after Tuesday’s Democratic sweep on Capitol Hill revived fears of a slowdown in AI data-center construction. The Nasdaq fell about 4.5%, entering a correction, while the S&P 500 dropped nearly 4%, with all 11 sectors lower on Thursday. Investors fled technology stocks, including CoreWeave, whose shares lost almost 9% on Thursday and more than half their value from the Nasdaq’s October record close. Neoclouds, such as CoreWeave, face greater financing and data-center development constraints than hyperscalers, which already have extensive infrastructure and could benefit from lower investment spending. Friday’s jobs report will be decisive: economists expect 65,000 jobs in October after September’s weak 29,000, unemployment unchanged at 4.2%, and average hourly earnings up 0.3%. Market expectations for a December Federal Reserve rate increase fell from nearly 83% to 66% as investors bought bonds, but the outlook remains dependent on the employment and inflation data. Overall, Friday’s jobs report will be the key test for markets.
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