Markets swung hard this week as election results, oil prices, and a vote on AI data centers all landed within a few days. Below is a short summary of what moved and what we’re tracking next.

The quick take

  • Stocks rallied Wednesday after the midterms, then a Thursday chip-stock selloff wiped out that gain and then some for the S&P 500 and Nasdaq.
  • Voters pushed back on AI data centers in their communities, and investors are weighing what that means for the AI buildout.
  • Results varied widely by index. The Dow was nearly flat for the week, while the Nasdaq fell 4.4%.6

How a 3% rally turned into a 4.4% drop

Bar chart of one-day index moves. Wednesday, Nov 4: Dow +3.0%, S&P 500 +1.6%, Nasdaq +1.4%. Thursday, Nov 5: Dow −3.4%, S&P 500 −4.4%, Nasdaq −5.5%.
  • Monday and Tuesday: Markets were mixed. On Monday, most stocks rose, helped by a 7.6% drop in the price of Brent crude oil.1 On Tuesday, gains in large technology stocks lifted the broader market.2
  • Wednesday: The Dow gained 1,569 points, or 3%, its best day since April 2025.3 Democrats won majorities in both the House and Senate,4 and investors welcomed the clear result along with President Trump’s statement that he would accept it.3
  • Thursday: The S&P 500 fell 4.4%, its worst day since April 2025, more than erasing Wednesday’s gain.5 The Nasdaq fell 5.5% and closed more than 10% below its recent high, which the industry calls a correction.6

Voters said no to data centers in 40 of 41 local measures

Data centers are the large facilities that power artificial intelligence. This year, voters had a direct say on them.

40 of 41 local ballot measures across 10 states went against data centers.
56% of voters said data centers were a crucial or major factor in their vote, according to a CNBC voter poll from November 2026.
  • Voters pointed to energy bills, land use, and the local economic effects of AI development. Opposition crossed party lines.9
  • Investors are now asking whether new local restrictions could slow the pace of the AI infrastructure buildout.10 Stocks tied to that buildout led Thursday’s decline.5

Data center debt was a red flag before the vote ever happened

Data centers are expensive, and more of them are paid for with borrowed money. Some investors were cautious before the election.

  • In mid-October, the Financial Times reported that bonds funding data center projects leased to several of the largest technology companies had slipped well below their face value.11
  • The vote adds to an open question about how quickly this spending will pay off for the companies doing the borrowing.

The week erased the rally, but 2026 is still up 7.4%

Bar chart of week-to-date price change through Thursday, Nov 5, 2026: Dow −0.5%, S&P 500 −3.0%, Nasdaq −4.4%.
  • Through Thursday, the S&P 500 is still up 7.4% for 2026.5 Past results don’t predict future results.
  • Owning a mix of investments spreads risk, but it doesn’t prevent losses. Thursday’s decline reached nearly every part of the market.

A down week can create tax losses you may be able to use

Tax-loss harvesting

When an investment in a taxable account falls below what you paid for it, selling it locks in a loss you can report on your tax return. The money can then go into a similar, but not identical, investment so you stay invested.

  • Losses first offset capital gains. If losses are larger, up to $3,000 a year ($1,500 if married filing separately) can offset other income, and the rest carries forward to future years.13
  • The wash sale rule disallows the loss if you buy a substantially identical investment within 30 days before or after the sale.14 Purchases in your IRA or by your spouse can count too.15
  • Harvesting often defers tax rather than removing it, because the replacement investment starts with a lower cost basis. It only applies to taxable accounts, and the replacement may perform differently from what you sold.

If you’d like a review of your taxable accounts for harvesting opportunities, talk with your Farther advisor. Results depend on your full tax picture, so check with your CPA before acting.

Three things we’re watching before year-end

  • Oil prices. Brent crude rose 2.6% Thursday to $97.11, recovering much of its nearly 9% drop the day before.7 Uncertainty about the war with Iran is still moving prices.7
  • Technology company spending. Watch whether the largest companies change how much they build, or how they pay for it.
  • Data center rules. The new Congress takes office in January, and more local votes on data centers are scheduled for December.12

Sources

  1. Associated Press, “How major US stock indexes fared Monday 11/2/2026,” Nov. 2, 2026.
  2. Associated Press, “How major US stock indexes fared Tuesday 11/3/2026,” Nov. 3, 2026.
  3. CNN Business, “Dow has best post-midterm elections day in 44 years,” Nov. 4, 2026.
  4. CNBC, “2026 midterm election results: House, Senate,” Nov. 4, 2026.
  5. Associated Press, “How major US stock indexes fared Thursday 11/5/2026,” Nov. 5, 2026.
  6. CNBC, “Stock futures fall after Nasdaq correction,” Nov. 5, 2026.
  7. CBS News, “Stocks crater as investors recoil from tech companies amid AI risks,” Nov. 5, 2026.
  8. CNBC, “Voters rebuff data centers in every ballot measure except one during the 2026 midterms,” Nov. 4, 2026, citing Ballotpedia.
  9. Fox Business, “Data centers were on the ballot, and voters sent unmistakable message,” Nov. 5, 2026.
  10. CBS News, commentary from E*TRADE from Morgan Stanley, Nov. 5, 2026.
  11. Financial Times, “Investors dump data centre bonds as AI borrowers face ‘Darwin moment,’” Oct. 15, 2026.
  12. The New Republic, “10 States With Data Centers on the Ballot All Voted to Ban Them,” Nov. 4, 2026.
  13. Kiplinger, “The IRS capital loss carryover rule,” 2026, summarizing IRS Topic No. 409 and 26 U.S.C. §§1211(b) and 1212(b).
  14. U.S. Securities and Exchange Commission, Investor.gov, “Wash Sales” glossary entry, citing IRS Publication 550.
  15. TaxAct, “Wash Sale Definition and Entry,” summarizing IRS Publication 550.

Important disclosures

This material is for informational and educational purposes only and is not investment, tax, or legal advice or a recommendation to buy or sell securities or pursue any strategy. Farther Finance Advisors, LLC (“Farther”) is an SEC-registered investment adviser; registration does not imply a particular level of skill or training.

Examples and projections are hypothetical, illustrative only, and do not guarantee future results. Investing involves risk, including possible loss of principal. Tax and legal outcomes depend on individual circumstances and applicable law.

Farther does not provide tax or legal advice or prepare tax returns. Consult qualified professionals before acting.

Index and market data: index figures are price returns, are unmanaged, have no fees, cannot be invested in directly, and do not represent any Farther strategy. Past performance is not indicative of future results. Market data and ballot results come from the third-party sources listed above, dated as shown; they are believed to be reliable but have not been independently verified, and ballot counts are unofficial until certified. Opinions reflect conditions as of November 5, 2026 and may change. Diversification does not ensure a profit or protect against loss. References to elections, candidates, or ballot measures are for market context only and are not an endorsement of any party, candidate, or position. Companies named are cited as reported by news sources and are not recommendations. Tax-loss harvesting: tax figures and rules reflect federal law as of November 5, 2026 and may change, and state rules may differ; confirm current limits with a tax advisor or irs.gov. Harvesting may not be appropriate for every investor, does not guarantee a tax benefit, and involves transaction and tracking-error risk. Ref: MarketCommentary-11-05-26