Not market sexpert but I believe the AI sell-off will not be long & market will stage a surprise recovery
1) Democrat politicans themselves own stakes in the major tech stocks. They will reach new deals/agreements with the data centers & tech giants after this initial sell off
2) The AI arm race for US will continue at all costs coz they wouldn't & cannot lose to China which is hot on its heels. US unlike China will never deliberately halt the economic growth of their top companies regardless of Democrats or Republicians
There's a push from within the Dem caucuses, to ban stock trading for Congressional members. With dems owning both chambers this coming Jan, there is a real chance this legislation might passed. Trump Shu Shu can veto the bill but it will reflect poorly on the GOP...
One of the key reasons why Dems won is because Trump voters saw the brazen corruption and flipped to dems. Corruption is a huge issue amongst voters.
AI race is not a key concern amongst voters. To them, it is just an excuse from the industry to push for govt bailouts, it's another form of corruption. Some congressional members are against the notion of govt bailouts for the tech industry.
Market doesn't like uncertainty. Hence the bloodletting...
