According to CoinMeta, Wall Street believes that the Democratic Party's overwhelming victory in the mid-term elections in the United States has prompted traders to re-examine the severe selling pressure on U.S. bonds this year. As tech stocks tumbled due to the change in political landscape, bond bulls saw an opportunity. The market speculates that political changes could put a brake on the "_AI investment boom." This boom has been driving economic growth, exacerbating inflation, and pushing up interest rates as companies have issued debt to finance related investments. Additionally, a politically divided government is also likely to prevent U.S. President Trump from passing any major tax or spending bills, thereby alleviating some of the market's concerns about the U.S. annual budget deficit. Scott DiMaggio, head of fixed income at Lippmann Brothers Group, stated that artificial intelligence has always been the biggest contributor to nominal GDP growth; therefore, any setback to growth could be beneficial for the bond market. As a result, the market has gained a level of reassurance: if the economy experiences fluctuations, there is still significant room for interest rates to fall.