Fears that Democrats could regulate AI lead to global market bloodbath

Voters overwhelmingly backed Democrats who promised to rein in the AI industry. Big Tech now faces the prospect of a less-accommodating political environment in the United States — and a public that has soured on AI.

BusinessNorth America

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BusinessNorth Americahttps://p.dw.com/p/5P9eB

A massive sell-off wiped over $2.5 trillion (€2.24 trillion) from global tech markets following the Democratic Party’s gains in the 2026 US midterm elections. Investors fear the end of Donald Trump‘s deregulatory approach, rising public resistance and the results of regional ballot measures to halt further construction of data centers for artificial intelligence. Tight infrastructure funding, low corporate cash reserves and uncertain profit timelines for AI compounded the rout. Though AI for defense purposes remains resilient, highly leveraged tech firms and politically aligned billionaires face mounting scrutiny and an abrupt market reality check.

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