Markets tank on final Friday before elections

Stocks fall to close out week as Election Day nears

Stocks took a nosedive to end the week, as investors’ concerns about mounting AI-related debt played out on Wall Street.

The S&P 500 dipped by 140 points from closing time Thursday and finished down by nearly 60 points from Monday’s opening bell.

The Nasdaq Composite finished down 590 points from Monday morning, after dipping to under 25,437 from a high of nearly 25,673 it reached during intraday trading Friday.

The Dow Jones Industrial Average also declined on the day, falling by 572 points from closing time Thursday.

Large tech companies have sought to keep up in the artificial intelligence race , issuing growing amounts of bonds to finance the construction of data centers across the country.

Capital spending by “hyperscalers,” or large-scale computing companies such as Microsoft and Meta, is on track to approach $800 billion this year, according to JP Morgan Asset Management.

Mohamed El-Erian , who chaired former President Obama’s Global Development Council, called Friday an “ugly” day for the market.

“Sharp selloffs on even relatively minor earnings blemishes show investors have now pivoted to applying much greater scrutiny to AI capex [capital expenditures], funding needs, monetization, and ROI [return on investment],” he wrote on social platform X.

El-Erian noted the rough day for the market “is not translating in a reassessment of the tech-led growth outlook , at least as of now.”

Stocks declined days before Election Day, with Republicans seeking to hang on to control of Congress for the bulk of President Trump’s final two years in office .

Welcome to The Hill’s Business & Economy newsletter , I’m Max Rego — covering the intersection of Wall Street and Pennsylvania Avenue.

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Key business and economic news with implications this week and beyond:

The national debt topped the entire gross domestic product (GDP) for fiscal 2026, according to new data from the Bureau of Economic Analysis (BEA).

Parents and former students are feeling the burn from the costs of education ahead of midterm elections that have been increasingly focused on affordability.

A North Korea-based cybercrime group appears to be behind a $6.3 billion hack of the cryptocurrency exchange Binance, according to two blockchain intelligence firms.

The companies that manage billions of dollars in prescription drug spending for employers and workers will soon be required to inform their clients all the different ways they get paid under a new rule released by the Trump administration Thursday.

Branch out with more stories from the day:

Congress’s 65-year defense bill streak could be in jeopardy

Congress’s annual Defense authorization bill is on shaky ground this year amid partisan infighting, threatening to upend the legislation’s unblemished 65-year streak of passage.

Business and economic news we’ve flagged from other outlets:

Trump tried not to roil the economy before midterms. He’s about to be unleashed ( Politico )

Chocolate makers get Halloween fright as health-conscious US shoppers cut back ( Reuters )

The Five Whirlwind Days That Brought Down Weil Gotshal ( The Wall Street Journal )

A federal judge has opened an investigation into concerns that the Trump administration lied to her in the ongoing legal battle over President Trump’s desire to redevelop East Potomac Golf Links. Read more

Election forecaster Sabato’s Crystal Ball moved the Senate races in Minnesota and Louisiana toward Democrats in the final days leading up to the Nov. 3 midterms. Read more

Opinions related to business and economic issues submitted to The Hill:

You’re all caught up. See you next week!