US Midterm Elections May Impact AI Stock Trading

Artificial intelligence (AI) concept stocks faced another round of selling this week, although some stocks saw a strong rebound during Thursday's trading, with companies like CoreWeave recovering some of their losses. As the US midterm elections on November 3 approach, investors are confronted with new risks: if the Democratic Party achieves unexpected victories in Congress and state elections, the policy uncertainties surrounding data center construction, AI regulation, and taxation of tech companies could further impact stocks in the AI supply chain. Despite the pullback in US tech stocks not dampening Wall Street analysts' expectations for a new round of strong earnings reports, IDX Advisors Chief Investment Officer Ben McMillan noted that criticism from Democrats regarding data centers is intensifying, which could become a real risk for AI trading. He stated that he is closely monitoring national and local polls, believing that taking action against AI data centers seems to be becoming a core issue for the Democratic Party.

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