Markets face a crowded week as midterm elections land Tuesday alongside a heavy earnings calendar. Apple (AAPL) and Palantir Technologies (PLTR) kick off results Monday. Advanced Micro Devices (AMD), Qualcomm (QCOM), Arm Holdings (ARM), and Uber Technologies (UBER) follow as the week unfolds.
Capital continues rotating out of tech and AI stocks into defensive sectors. Investors want to know if this week’s results can slow that shift.
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Monday’s ISM Manufacturing data and Wednesday’s services readings will gauge economic momentum.
Midterm results could also shift expectations on taxes, tariffs, and spending into 2027.
Here are 5 things to watch this week in the Market.
US Midterm Elections: Policy Uncertainty Ahead
Tuesday’s midterm elections could reshape control of Congress and the policy agenda for two years. Markets dislike uncertainty, so volatility may rise until results are clear. A divided Congress would likely limit major new legislation. Some investors view gridlock as supportive for stocks, since it reduces policy surprises. Historically, the S&P 500 has tended to rally in the months following midterm elections. That pattern is not guaranteed, but it shapes positioning heading into year-end. Healthcare, energy, and defense stocks often react sharply to election headlines. Treasury yields will also be watched for any reaction to fiscal policy expectations. Close races could delay final results and extend uncertainty beyond Wednesday.
Capital Rotation Out of Tech and Into Defensives
Money has been steadily leaving richly valued technology and AI names. Consumer staples, utilities, and healthcare have attracted much of that capital. Investors are favoring earnings visibility and dividends over speculative growth stories. This week offers several tests for the defensive trade. Pfizer (PFE) and Amgen (AMGN) report Tuesday. Novo Nordisk (NVO) follows Wednesday. Keurig Dr Pepper (KDP) adds a consumer staples read Tuesday. Power producer Vistra (VST) reports Friday, bridging utilities and AI energy demand. Solid results would reinforce the rotation. A strong showing from tech, however, could slow or reverse the flow.
Big Tech and Semiconductor Earnings Test
Apple (AAPL) reports Monday, with focus on iPhone demand, services growth, and AI features. Palantir (PLTR) tests AI software adoption and government contract momentum. AMD (AMD) reports Tuesday, with investors watching data center chip demand against Nvidia. Arista Networks (ANET) and Astera Labs (ALAB) also report Tuesday. Both offer a read on AI networking spend. Qualcomm (QCOM) and Arm (ARM) report Wednesday, covering mobile and edge AI demand. Datadog (DDOG) and AppLovin (APP) add software views the same day. Cloudflare (NET) reports Thursday. Strong guidance could steady the battered chip sector. Weak outlooks would likely extend the selloff and fuel further rotation.
Consumer and Energy Earnings Read-Through
Booking Holdings (BKNG) reports Tuesday, offering a read on travel demand into the holidays. Shopify (SHOP) also reports Tuesday, showing e-commerce trends ahead of peak shopping season. Uber (UBER) and McDonald’s (MCD) report Wednesday. Uber reflects ride-sharing and delivery spending, while McDonald’s shows value-seeking behavior. ConocoPhillips (COP) and Devon Energy (DVN) report Thursday. Their results will show how volatile crude prices are affecting profits. Berkshire Hathaway (BRK.B) closes the calendar Friday with a broad view of the U.S. economy. Investors will also watch Berkshire’s cash pile for signs of new buying.
Economic Data and Crude Inventories
Monday’s ISM Manufacturing PMI at 10:00am opens the week’s economic calendar. The ISM Manufacturing Prices component will show whether input costs are still climbing. Tuesday’s JOLTS job openings offer a look at labor demand. Wednesday’s ADP report at 8:15am previews private sector hiring. Services PMI and ISM Non-Manufacturing data follow Wednesday morning. Crude oil inventories at 10:30am Wednesday will show supply and demand trends. Thursday’s initial jobless claims at 8:30am round out the labor picture. Weak data could revive rate cut hopes and ease bond yields. Strong readings may keep yields elevated and pressure growth stocks further.
Best of luck this week and don’t forget to check out my daily options article.
On the date of publication, Gavin McMaster did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.