Caution spread over the outlook for AI-related shares after regulation advocates won the US midterm elections, while expectations of tighter data-centre regulation were cited as a factor weighing on the market. Attention is also focused on the outlook for the Nasdaq's sharp decline and future movements in long-term interest rates and the dollar.
Following the midterm election results, selling of AI-related shares intensified, particularly in the US market, while expectations of tighter regulation have weighed on the market. There is growing concern that the pace of development of data centres supporting AI investment could also be affected.
Data centres are considered essential infrastructure for AI, and although it has been noted that there are 800–1,000 planned projects, some estimates suggest that approximately 10% of the plans may not be realised.
After the Nasdaq, led by technology shares in the New York market, plunged over five days, it rebounded somewhat on the 6th but remained down more than 10% from its record high.
Market participants have pointed to the possibility that expectations for Federal Reserve rate hikes could be reassessed. Depending on policy management from next year onward, periods of dollar weakness are also envisaged.
AI investment is not expected to end immediately, however, and many voices are calling for close attention to how the regulatory debate is reflected in policy.