Democrats take power in Congress. Investors are worried about the AI boom

The article discusses the recent stock sell-off in AI companies, the impact of political changes on Elon Musk's ventures, and historical trends in stock market behavior post-midterm elections. Following the Democratic victories, stocks of Tesla and SpaceX dropped significantly, raising concerns about AI infrastructure investments in Texas. Analysts predict potential regulatory challenges for Musk's companies and a possible slowdown in their merger plans. Despite initial market fears, historical data suggests that stock markets tend to recover and grow after midterm elections, with Trump’s recent comments providing some investor reassurance. Political paralysis may negatively affect governance but could benefit market performance.