The Democratic Party scored a landslide victory in the U.S. midterm elections. As views spread that its policy of tightening AI regulation will gain momentum, the market is on guard for selling pressure on AI-related stocks.
Following the U.S. midterm elections, the Democratic Party is expected to secure majorities in both chambers of Congress, prompting broader views that uncertainty over the political outlook will recede. At the same time, the Democratic Party is calling for tighter AI regulation, and market views are spreading that this could affect companies’ investment decisions.
Although issues surrounding President Trump’s administration remain, the loss of a Senate majority is drawing market attention as a factor that could affect the administration, including the appointment of Federal Reserve governors. It has also been suggested that this could affect discussions over tariff policy.
Caution toward the Democratic Party, which is calling for restrictions on AI development and tighter data center regulations, is spreading, and the possibility that growth in AI-related capital investment may not proceed as expected has been cited as a source of market concern. There are concerns that weaker demand resulting from tighter regulation could affect share prices.
While some expect vigilance over selling pressure on AI-related stocks to increase in the equity market, others believe market reactions could vary depending on the administration’s policy direction. Following the report by Yomiuri Shimbun Online, caution is warranted in making investment decisions.