AI Regulations, Tariffs, U.S. Investments... Uncertainty Deepens Anxiety

[Anchor]

What ultimately weighed down the stock market was the regulatory movement targeting 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 the specific direction of these policies becomes clear.

Reporting follows from Hong Yeongjae.

[Reporter]

The U.S. stock market plunge on the second day after the election is interpreted as a result of vulnerabilities in the current AI investment structure being brought to light.

It is a form of circular financing, where Nvidia lends money to major IT firms as well as startups. These companies then leverage this credit to pull in even larger loans, and subsequently use those funds to buy Nvidia chips back.

There are concerns that if data center construction is blocked as the Democratic Party pushes for, this structure could break down, spreading shocks to the financial sector and the broader economy, which pulled 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 a sense of burden.

Following today's (November 6) plunge, remarks have emerged from within the Democratic Party suggesting that if companies pitch in more costs, they could allow data centers to be built.

[Gina Hinojosa / Texas Governor-elect : As long as protections for residents are established, we can strongly foster the economy and industry while protecting residents at the same time.]

In addition, the Democratic Party cannot help but be mindful of criticisms that the U.S. could fall behind in the AI competition with China.

[Kim Dong-won / Managing Director of Research Center, KB Securities : Wouldn't it be easy for the Republican Party to point fingers and say, 'It's because the Democratic Party put the brakes on AI'? Then the stock market would be ruined, and would the Democratic Party want that? In reality, selective regulation of data centers could become a realistic alternative.]

While the Democratic Party's stance needs to be monitored further, this implies that the shock could be mitigated across related sectors ranging from semiconductors to electronics.

However, the analysis that pressure to increase investment in the U.S., centered around tariffs, will not recede remains a source 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 domestic investments within the United States.

Until the uncertainty lifts from the parallel lines of Trump, who intends to stick to his policies, and the Democratic Party, which aims to alter that stance, anxiety is expected to persist for some time.

(Video Editing: Choi Jin-hwa, Design: Bang Min-ju)
※ Please note: This article was translated by AI and may contain errors.