AI Election Backlash Is Shaping Wall Street’s Stock Market Views

The backlash against artificial intelligence and the data centers needed to power it is becoming an election issue that is influencing Wall Street's stock market recommendations. US bond selloff has pushed 30-year yields to their highest level since 2007. US-Iran peace prospects have dimmed as President Trump rejects a truce extension.

Anthropic's annualized revenue has topped $65 billion before its IPO. Stripe has secured a deal to buy AI firm OpenRouter for over $7 billion. Andreessen Horowitz is under investigation by the DOJ over its board directors. Bank of America strategists have warned that a strong showing by Republicans in the November midterms, potentially including Texas Governor Greg Abbott's reelection, could result in a 10% or greater slump in US equities the next year.

This warning follows earlier concerns from Evercore ISI and BCA Research regarding a populist response to AI's impact on the market. Opposition to building new data centers is a bipartisan issue in the US, with voters concerned about their environmental impact and the resulting increase in electricity prices. Some cities, counties, and states have already placed restrictions on data center construction.

A recent policy decision by Texas Governor Abbott has paused electric grid approvals for data centers and ordered regulators to audit every similar project. While Hartnett remains optimistic about Abbott's potential re-election as a bullish sign for AI, other analysts are wary of the audit requirements' implications for regulated utilities and power equipment companies.