[Anchor]
What ultimately weighed down the stock market was the move to regulate the artificial intelligence industry and data centers. The problem is that it remains unclear just how far and in what manner the U.S. Democratic Party will actually implement regulations. Market anxiety is unlikely to subside easily until concrete policy directions emerge.
Reporting by Hong Yeongjae.
[Reporter]
The sharp drop in the U.S. stock market on the second day after the election is interpreted as the spotlight falling on the vulnerabilities of the current AI investment structure.
Known as circular finance, the setup works by Nvidia lending money not just to major IT companies but also to startups. These companies then leverage this credit to pull in even larger loans, which they subsequently use to buy Nvidia chips all over again.
The concern that if the construction of data centers is blocked—as pushed by the Democratic Party—this structure could collapse and spread shocks throughout the financial sector and the broader economy is what appears to have dragged down the entire U.S. stock market.
Some point out that because AI investments have a massive impact on growth rates and jobs, the Democratic Party may also feel the pressure.
Following today's (November 6) plunge, figures from the Democratic side have made remarks suggesting that data centers could be allowed if companies shell out more in costs.
[Gina Hinojosa / Governor-Elect of Texas: As long as protections for residents are put in place, we can strongly foster our economy and industry while protecting residents at the same time.]
Additionally, the Democratic Party cannot ignore criticisms that they could fall behind in the AI competition with China.
[Kim Dong-won / Managing Director of Research Center, KB Securities: Isn't it easy for the Republicans to blame it on the Democrats by saying, "The Democrats put the brakes on AI"? The stock market would be ruined, and would the Democrats want that? In fact, selective regulation of data centers could become a realistic alternative.]
While the Democratic Party's stance still needs to be monitored, this suggests that the shock to related sectors ranging from semiconductors to electrical and electronic goods could be cushioned.
However, the analysis that pressure to increase investment in the United States—centered around tariffs—will not let up remains a factor of anxiety.
This is because amid a record-high trade surplus with the U.S., the Democratic Party is also expected to adopt policies that increase investments within the United States.
Until the uncertainty lifts from the parallel lines maintained between Trump, who insists on sticking to his policies, and the Democrats, who vow to correct his stance, market anxiety is expected to persist for some time.
(Video Editing: Choi Jin-hwa, Design: Bang Minju)
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.