Goldman Sachs Says US Midterm Election "Blue Wave" Will Have Major Impact on AI Regulation

Deep News11-05 10:20

Goldman Sachs said the US midterm election results represent a "blue wave" that could have a significant impact on AI and data center regulation.

"With Democrats winning far larger majorities than expected in both the House and the Senate, we expect they will use the upcoming fiscal deadline to seek policy concessions, particularly restrictions on the Iran war, removal of some tariffs, and reversal of recently implemented spending cuts," said Goldman Sachs strategists including Janie Greenberg.

Consistent with this view, the oil risk premium has already declined.

Even so, Goldman Sachs believes there are downside risks to Middle East oil supply, which could push the risk premium higher again.

"We also believe that Democratic victories at the state and local levels will have a major impact on AI and data center regulation, which our analysts believe could have negative effects on some US utilities and independent power producers (IPPs)."

However, Goldman Sachs expects the importance of the data center issue to "somewhat diminish" in the future, and any pause in the development of these centers will be short-lived.

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