727 FinancePANews reported on September 24 that the U.S. midterm elections are becoming a key source of concern for the stock market amid rising AI trading. Polls and prediction market results over the past few weeks have been clearly tilted in favor of Democrats, and now increasingly indicate that Democrats are likely to regain control of at least one chamber of Congress.
Wall Street strategists pointed out that such an outcome could put pressure on stocks that have benefited from the AI boom; these stocks tend to be highly valued and have little room for error, and future investigations, hearings, and even stricter regulatory measures may be negative.
Brian Mulberry, chief market strategist at Zacks Investment, said that if the Democratic Party performs strongly in the November election, hearings on AI safety issues may increase in number and momentum. News from Washington may trigger traders' concerns about congressional actions, leading to fluctuations in AI-related sectors.
Tobin Marcus, a strategist at Wolf Research Company, predicts that the Democratic Party may establish an "AI Special Committee" to question industry executives and may issue subpoenas.