S&P 500 Jumps 2.3% on November 9 After Post-Election Losses
Key Facts
The S&P 500 rose 2.3% on November 9 and was on track for a second straight day of gains, following losses the previous week. The Associated Press said the rebound came after a sell-off sparked by concerns that Democratic victories in the midterm elections could slow the construction of AI data centers. U.S. stocks had surged on November 4 after President Donald Trump’s party lost sole control of Washington. But the trend reversed in the next session, as the index fell sharply amid investor concern about the election outcome’s implications for the sector. The sessions’ moves show a rapid shift in risk appetite after the election.
On November 5, the S&P 500 fell 4.4%, its steepest one-day drop since the tariff turmoil in April 2025. In the same session, futures on the index fell about 0.6% before paring losses, while Nasdaq futures dropped more than 2% before trimming their decline to 0.8%, according to Reuters in a report published by Fidelity. CBS quoted Chris Larkin of E*Trade as saying, "The cracks were evident in the AI complex, and widened Thursday amid investor concerns that data center construction could slow as Democrats take control of Congress." Coverage linked market pressure to specific concerns about investment in AI infrastructure. On November 6, the index rose 0.3% to 7,376.86 points, but ended the week down 2.7%.
The November 6 session saw divergence among U.S. indexes: the Nasdaq rose 1.1%, while the Dow Jones fell 0.5%. The Associated Press described Wall Street’s relative stability as halting a global stock-market slide. On November 9, oil also supported stocks: Brent crude rose 4.8% in the session to $93.59 a barrel, after trading above $112 at the start of the month. The agency said falling oil prices had helped support stocks. In the bond market, the 10-year U.S. Treasury yield was 4.88%, compared with 4.86% at Friday’s close. These moves came as investors continued to assess the election’s impact and concerns about data center spending.
The U.S. economy added 165,000 jobs in October, more than double the 65,000 increase economists had expected, while the unemployment rate fell to 4.1% from 4.2% in September, according to a report cited by Axios. An ADP report showed private-sector employment increased by 86,000 in October, compared with 90,000 in September, but exceeded economists’ forecast of 75,000. The second report measures private-sector jobs, while the nonfarm payrolls figure covers total employment, according to the report cited by Axios. Labor-market data provide an economic backdrop for markets to follow during election week, alongside concerns tied to investment in AI data centers. The next inflation report comes as investors monitor economic data and remarks expected from Federal Reserve officials.
The U.S. Consumer Price Index report for October was scheduled for release on November 10 at 8:30 a.m. Eastern time, according to the Bureau of Labor Statistics calendar. In the previous reading, the Consumer Price Index for All Urban Consumers rose 3.7% year over year in September. The Federal Reserve calendar also listed a November 10 speech by Governor Christopher Waller on the economic outlook. It also listed two events for Fed Vice Chair for Supervision Michelle Bowman, at 3:30 p.m. and 6:30 p.m. Eastern time, both on the economic outlook. The inflation data and events follow stock-market volatility linked to the election outcome and concerns about the AI sector.