MWA

By Mark DeCambre

Wall Street takes a harder look at AI costs after historic midterm elections. Plus, the upside to Apple's lack of artificial-intelligence spending.

Blood in the water?

👋🏽Happy Thursday! Here's what's caught my attention this morning: Anthropic's IPO.

Wednesday was a spectacular day for stocks. The Dow registered its biggest daily gain since April 2025 as Wall Street appeared to welcome the Democrats' sweeping midterm victories and a sharp drop in oil prices.

But not every stock ripped higher.

CoreWeave, Dell, Micron and Lumentum were among the AI-related stocks that took a beating, with investors growing increasingly uneasy over the cost of the AI buildout and the election results raising the prospect of greater congressional scrutiny of data centers.

Which brings me to Anthropic.

The creator of Claude is preparing for arguably the most anticipated IPO in years - perhaps before Thanksgiving. That stock-market debut, though, comes as investors grow increasingly discerning about AI spending.

So, just how much are investors willing to pay for AI's promise when they're growing more anxious about its price tag? Anthropic may represent the clearest test to date of that concept.

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Three stories worth your time ...

-- These 12 stocks are good bets to beat the 10-year Treasury over the next decade

-- Hospital stocks rally while drug manufacturers brace for scrutiny. Here's what the Democratic wave means for healthcare.

-- What Trump can do without approval from a Democratic Congress

Wall Street's postelection celebration may face headwinds on Thursday.

U.S. stock-index futures were mixed early, with Dow futures pointing higher while the tech-heavy Nasdaq-100 was under pressure. Overseas trade offered an uneven read on U.S. sentiment. Notably, South Korean stocks, as gauged by the Kospi index XX:186741, tumbled more than 5% on the back of selling in chip companies, while Hong Kong shares (HSI00) surged more than 3%.

Oil prices, meanwhile, were edging higher after plunging more than 8% Wednesday. Investors are weighing whether Democrats' election victories could spell the end of the protracted war in Iran.

-- Follow our real-time coverage of the market

-- 4 market-moving issues investors should watch now that the midterms are over

-- Investors are blind to the possibility of a market crash

AI bane becomes boon for Apple ...

Apple is now worth more than $5 trillion.

Apple's stock jumped more than 5% to record heights Wednesday, solidifying its place as the world's most valuable company.

So why is the iPhone maker doing so well when shares of many of its Big Tech peers are selling off? The answer may lie in its limited spending on AI, as tech investors now view Cupertino as a port in an AI storm, writes Christine Ji.

-- Meanwhile, a slower approach to data-center builds in the wake of the midterm elections could help raise prices for Microsoft and Amazon

Affordable care?

Health assurance is getting more expensive, and some Americans may face an uncomfortable choice: to pay more for coverage or go without.

MarketWatch's Jaimy Lee breaks down the three biggest changes coming for the Affordable Care Act, and what they could mean for your healthcare costs.

Social Security tab?

Social Security faces a funding shortfall in about six years. One possible fix? Tax more of the earnings of higher-paid Americans.

Democrats' midterm victories could inject fresh momentum into that idea. One proposal backed by senators from both parties would eliminate the current $184, 500 ceiling on earnings subject to Social Security payroll taxes.

But bipartisan interest doesn't necessarily translate into a deal. And the clock is ticking.

Financial insecurity ...

What does financial insecurity really look like?

How about a 66-year-old nurse with less than $500 in the bank, making $2,000 a month from Social Security and sharing a two-bedroom apartment with a roommate? What happens to the tens of millions of people like her with little or nothing saved for retirement and no safety net?

The Moneyist weighs in on the harsh financial realities that too many Americans face.

Business is hopping. Hiring? Not so much ...

The U.S. economy's biggest engine is still humming, but it's running into costly headwinds. The services sector expanded in October, according to the Institute for Supply Management, even as companies grappled with stubbornly high costs. Hiring showed glimmers of improvement, though, and the payroll processor ADP reported that private employers added 86,000 jobs last month.

Friday brings the next big test, when the government's October jobs report will provide a fuller picture of a labor market that has been stuck in neutral.

About me

Mark DeCambre is editor in chief of MarketWatch. He has spent more than 20 years covering Wall Street, markets and personal finance, and writes Need to Know, drawing on the award-winning analysis and journalism of the newsroom.

-Mark DeCambre

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11-05-26 0716ET