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A strong surge in chip shares steadied US stocks on Friday, but the weekly decline is still sharp; Inflation and fiscal reports next week will test the potential for a rebound, while employment, restrictions on AI infrastructure and the situation in Iran will also weigh on the market.
US stocks On Friday, chip stocks rallied to steady the market, but the major indexes still closed in the black for the week, with the S&P 500 posting its biggest weekly decline since April 2025. Faxin and TSMC ADRs rebounded 4.2% and 6.3%, respectively, on Friday, but still fell 12.2% and 7.6% on the week. Here are the five most important international news to review before the markets open next week:
Next week’s inflation data, as well as earnings reports from CoreWave, Applied Materials and Cisco, will test whether the rebound can continue. The market expects there to be about an 80% chance of the Fed raising interest rates in December. Higher interest rates could increase the cost of financing AI construction. Investors will also ask whether data center restrictions affect construction schedules, procurement and profitability.
Some strategists believe opportunities will emerge once forced selling pressure subsides, but others warned that Friday’s rally was akin to short covering and bargain hunting, as concerns over AI regulation and spending remain.
The United States created 165,000 new jobs in October, more than double what the market expected. The September figures were also significantly revised up to 60,000. The unemployment rate unexpectedly fell to 4.1% in October.
Traders are betting on strong jobs datafederal Reserve US Treasury yields rose as rates rose in December. Goldman Sachs traders said that after the huge fall in the stock market, panic in the market has increased to extreme levels. After such a situation occurred in the past, there was often a strong rally in the medium term.
After the US midterm elections, data center expansion will face further restrictions. According to data from research firm Cleanview, about 40% of the capacity being built in the United States is located in states where new governors have promised to freeze or suspend development. Another 46 local referendums have passed or are expected to pass to restrict construction, and at least 17 have banned large-scale data centers altogether.
Bloomberg Industry Research estimates that the election results may reduce the technology industry’s original estimated US$1.4 trillion AI infrastructure spending in 2027 by 5% to 7%, and up to about 10GW of computing power will not be activated as scheduled.
Developers may adjust their construction plans and move development to other states. Local governments have control over land use and taxation, and impacts can emerge faster than governors’ measures. Even if construction is not halted entirely, longer permit review times and increased power and water conditions could slow expansion.
Bloomberg quoted diplomats familiar with the matter as saying that there could be a breakthrough in talks between the United States and Iran to end the war. Tehran is keen to discuss nuclear program issues it has refused to touch in the past and is studying a plan proposed by key mediator Qatar. If Iran makes concessions, it is expected to move forward talks that have been deadlocked since the collapse of an interim peace deal in June.
Trump also recently spoke on the phone with the head of state of Qatar to discuss resolving differences and reaching a comprehensive ceasefire agreement. The Iran War increased oil prices and inflation, which became one of the reasons for the Republican Party’s defeat in the midterm elections.
After Trump said he had no immediate plans to launch another airstrike on Iran, Brent oil prices fell below $100 a barrel for the first time since September. But he may still decide to resume his attack.
