US stocks open higher on divided Washington bet; AI regulation fears hit data centres
US stocks opened higher on 4 November as investors bet a divided Washington after the Democrats' midterm sweep could limit sharp policy shifts. Data centre stocks slid on concerns over tighter artificial intelligence regulation. The Dow rose 1.93 per cent, the S&P 500 1.14 per cent and the Nasdaq 1.
US stocks opened higher on Wednesday as investors bet a divided Washington after the Democrats' midterm sweep could limit sharp policy shifts, though data centre-related stocks were under pressure as concerns over tighter artificial intelligence regulation weighed, according to Reuters.
The Dow Jones Industrial Average rose 997.76 points, or 1.93 per cent, at the open to 52,784.48. The S&P 500 rose 86.51 points, or 1.14 per cent, at the open to 7,655.43, while the Nasdaq Composite rose 271.36 points, or 1.07 per cent, to 25,643.36 at the opening bell.
Investors appeared to welcome the prospect of a divided government, which could make it harder for any party to enact sweeping changes to fiscal or regulatory policy. The market's initial reaction suggested a relief rally driven by expectations of legislative gridlock.
However, data centre stocks faced selling pressure amid fears that a Democrat-controlled Congress could push for stricter oversight of artificial intelligence. The sector, which relies heavily on AI-related demand, has been seen as vulnerable to any regulatory clampdown.
The mixed open reflected a tug-of-war between optimism over political stability and anxiety over sector-specific regulatory risk. Traders will watch closely for further policy signals from the new Congress.