As tech swoon roils market, US inflation data on tap

The tech-heavy Nasdaq Composite suffered a nearly 12% drop from its October 6 record high on Thursday, signaling a potential correction after a year of market rally driven by AI data-center buildouts. Democrats' decisive victory in the US midterm elections, coupled with concerns about slowing AI development, has created market unease ahead of key economic data and earnings reports.

Inflation data, particularly the Consumer Price Index report released by the government on Tuesday, is eagerly anticipated by investors. Several technology companies, including CoreWeave, Applied Materials, and Cisco Systems, will also release their earnings reports next week. The volatility in the market is attributed to the political party overhang and regulatory concerns following the election results, particularly in states with numerous data-center facilities.

Tech stocks led a modest rebound on Friday but still posted weekly losses. The upcoming week will test the market's resilience with the release of crucial economic data and earnings reports from key tech players.