Bank of America Sees 10% Stock Slump if Democrats Win Texas, Senate as AI Backlash Grows
Updated
Updated · Bloomberg · Aug 18
Bank of America Sees 10% Stock Slump if Democrats Win Texas, Senate as AI Backlash Grows
3 articles · Updated · Bloomberg · Aug 18
Summary
Bank of America strategists told clients a strong Republican showing in November's midterms would make US equities “rip,” while a Democratic sweep of the Senate and Texas governor's mansion could trigger a stock-market correction next year.
More than 10% downside is tied specifically to the reelection fight of Texas Governor Greg Abbott, which the bank singled out as a key political marker for AI and data-center policy.
Wall Street is folding election risk into market calls because backlash against artificial intelligence and the power-hungry data centers behind it has become a potent campaign issue.
Evercore ISI and BCA Research had already warned that a populist response to AI could hurt equities, showing the concern is spreading beyond Bank of America.