Markets brace for AI crackdown after Democrats sweep US midterms

Global technology stocks experienced a sell-off after the Democratic party swept the US midterm elections, gaining control of the House of Representatives and Senate. This shift creates a significant blocker to President Donald Trump’s agenda and suggests increased regulatory scrutiny for the AI trade. Despite these initial losses and the bracing for an AI crackdown, Wall Street markets edged higher on Wednesday, reversing early declines as the Democratic party continued to gain ground during the election process.