🔻Market reaction to the results of the US midterm elections

After the results of the US midterm elections became clear, stocks fell but then rose again, as traders assessed the impact of the midterm election results on the artificial intelligence industry.

Tech-focused indexes in Asia such as Japan’s Nikkei and South Korea’s Kospi fell by as much as 6% in the early afternoon on Wednesday, but later increased.

US stock market futures were lower. Nandini Roy Choudhury of Future Market Insights says markets are taking into account a mix of political uncertainty, concerns about the outlook for technology companies, and buying of stocks after the initial selloff.

She says the Democrats’ victory could increase criticism of technology companies as well as the rollout of data centers that support the development of artificial intelligence.

Technology giants such as Amazon, Alphabet, and Meta have pledged to spend hundreds of billions of dollars to build artificial intelligence infrastructure.

Josh Gilbert from investment firm iE Toro says: “Artificial intelligence development doesn’t stop overnight,” but greater oversight and more court proceedings could “gradually weaken big tech firms.”

Meanwhile, in Europe, on Wednesday morning, the London Stock Exchange index started up 0.57%, while the French and German stock exchanges rose by 0.56% and 0.62%, respectively.