Recent midterm election outcomes and mounting concerns over potential restrictions on AI data center expansion triggered a sharp 4.36% drop in the S&P 500 to 7,353.73 on November 5, its largest one-day decline since April 2025 and a reversal from the prior session’s 1.58% gain to 7,688.62. The index closed the prior week near 7,580 and remains about 6% below its October high of 7,818.93. Traders are now focused on the October nonfarm payrolls report due November 6, which could shift market-implied odds for a December Fed rate hike currently near 70%. Weaker labor data would ease policy-tightening expectations, while resilient readings could reinforce them amid ongoing inflation monitoring.