Definition
Computer systems that do tasks that normally take human thinking, like writing, recognizing images or answering questions. In market news, "AI" usually means the companies building it and the money being spent on the chips, data centers and power to run it.
The story
On Nov 4, 2026, the day after the midterms, the S&P 500 had its best day in three months, but AI stocks lagged. Nvidia fell 3.1% and did more than any other stock to hold the index back, and CoreWeave dropped 9.9%, as investors weighed whether election results in Texas could slow the build-out of AI data centers (AP). A big rally, with the AI names going the other way.
Why markets watch it
Some of the largest companies in the S&P 500 and Nasdaq are tied to AI spending, so news about it can move the whole index, not just tech.
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We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms