Apple earnings and US midterm elections test AI-wary stock market
Global markets face an eventful week as Apple earnings, the US midterm elections, and the latest employment data collide on Wall Street. Technology shares slipped late last week over mounting questions regarding artificial intelligence capital outlays, leaving the Nasdaq Composite down 2.86% at 25,437 points.
⚡ Key numbers:
- 25,437 points – Nasdaq Composite level following a 2.86% decline
- 7,580 points – S&P 500 close after a 1.82% slide
- 101.96 – US Dollar Index (DXY) level ahead of the midterm election
- 7.56 billion USD – SpaceX quarterly AI revenue compared to 813 million USD a year earlier
Midterm vote and employment data heighten market volatility
Financial markets face an exceptionally dense calendar headlined by the US midterm elections, the monthly nonfarm payrolls report, and corporate earnings. CNBC reported that stocks began last week with solid momentum before ending in broad declines as investors rotated into defensive holdings. The S&P 500 closed down 1.82% at 7,580 points, while the US Dollar Index hovered at 101.96.
According to MarketWatch, equity portfolios are increasingly sensitive to movements in the bond market as political stakes rise. Amid tightening conditions, broader market valuations are being re-evaluated as stocks face high-stakes test against shifting borrowing costs.
Heavy AI spending raises questions over Big Tech margins
Corporate earnings fueled powerful stock gains throughout 2026, but MarketWatch reports that this growth engine could face deceleration in 2027. Investors grew anxious that billions channeled into AI infrastructure may take longer than anticipated to generate commensurate revenues. In parallel, Axios reported that major US financial institutions and artificial intelligence firms are preparing response protocols for potential severe technological disruptions.
Despite broader tech weakness, top analysts tracked by TipRanks maintain optimistic multi-year targets. Morgan Stanley analyst Joseph Moore reaffirmed a buy rating on Nvidia with a $300 target following the GTC Berlin event. Meanwhile, Ryan Koontz of Needham reiterated a buy rating on SpaceX with a $250 target, highlighting a surge in quarterly AI compute revenue to $7.56 billion from $813 million a year earlier.
John Ternus takes the helm as Apple reports results
A rare Monday earnings release will thrust Apple directly into focus at a critical moment for the tech sector. As reported by MarketWatch, the report will offer investors an initial look at how new Chief Executive John Ternus handles elevated memory component pricing alongside consumer spending pressures.
Broader software providers will also provide clarity on enterprise IT demand. Bank of America analyst Koji Ikeda raised his price target on Datadog to $335 ahead of earnings, forecasting third-quarter revenue growth of 28.7%.
“We think results will be supportive of our long-term thesis that Datadog is a strong share gainer in the rapidly expanding observability opportunity”
— Koji Ikeda, Bank of America analyst (via CNBC)
What to watch next
- Apple's quarterly earnings release on Monday under new Chief Executive John Ternus.
- The outcome of the US midterm elections and its impact on Treasury yields.
- The monthly US nonfarm payrolls data for insight into labor market momentum.
Frequently asked questions
Why are Apple earnings drawing heightened attention this week?
This marks the company's first quarterly report under new CEO John Ternus, highlighting how management navigates rising memory component costs and consumer hardware demand.
How did major US indices close heading into the election week?
The Nasdaq Composite retreated 2.86% to 25,437 points, while the S&P 500 declined 1.82% to 7,580 points amid heavy selling across technology names.
What price targets do Wall Street analysts maintain on key AI hardware players?
Morgan Stanley reiterated a $300 price target on Nvidia, while Needham set a $250 target for SpaceX following strong revenue growth.
Sources: MarketWatch, CNBC, Bankier.pl, Yahoo Finance.
Disclaimer: This article is for information purposes only and does not constitute investment advice. Data as of Nov 1, 2026, 17:55 may vary by source. Trading leveraged CFDs carries a high risk of losing money.
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