Wall Street braces for volatile week as AI spending fears and midterms trigger selloff

Wall Street entered a high-stakes week after Friday's sharp selloff, with the Nasdaq dropping 2.86% - its worst day since early June. Analysts warn that AI infrastructure spending concerns, upcoming midterms, and key earnings reports could trigger further declines. Intel fell nearly 29% and Amazon disappointed, while Alphabet lost about $500 billion in market value. The Kobeissi Letter noted the Nasdaq's drop coincided with rising odds of a Democratic midterm sweep, with market-implied odds surging from 65% to 72%.