A Democratic sweep could lead to populist measures targeting AI and strengthen opposition to data centres, said an analyst. (File pic)BENGALURU: A fresh bout of AI anxiety pressured global stocks on Tuesday, while investors were on tenterhooks as voting began in crucial US midterm elections.

Traders on Polymarket see about a 77% chance of Democrats winning both chambers of the US Congress, an outcome that could lead to tougher oversight of AI and more corporate regulation.

"In the case of a full blue sweep, I would expect some populist measures against AI. The narrative against data centres would get a tailwind," said Alexander Lis, chief investment officer at Social Discovery Ventures.

Big Tech's lacklustre earnings and steep capital spending targets have unnerved Wall Street in recent days, putting the election verdict under greater scrutiny.