The markets' reaction to the results of the US midterm elections.
Stocks fell but recovered as midterm election results came in, as traders gauged the impact of the midterm election results on the artificial intelligence industry.
Technology-focused indices in Asia, such as Japan's Nikkei and South Korea's currency, were down 6 percent early Wednesday afternoon, but later rose.
US stock market futures fell. Nandini Roy Choudhury of Future Market Insight says markets are catching a mix of political uncertainty, worries about the outlook for tech companies and buying stocks after the initial sell-off.
According to him, a democratic victory could increase the criticism of technology companies, as well as the launch of data centers that support the development of artificial intelligence.
Technology giants such as Amazon, Alphabet and Meta have pledged to spend hundreds of billions of dollars on building artificial intelligence infrastructure. "The development of artificial intelligence will not stop overnight," says Josh Gilbert of the investment firm Itoro, but more oversight and lawsuits could "gradually weaken the big tech companies."
Meanwhile, in Europe, on Wednesday morning, the London stock index started up 0.57%, while the French and German stock markets rose 0.56% and 0.62%, respectively.