NEW YORK — Stocks slipped in morning trading Friday after a steep sell-off the day before, as investors digested Democratic victories in the midterm elections and worried that a blue wave will bring heavier scrutiny of the data centers and artificial intelligence infrastructure that have powered the market's recent run-up. The AI boom has been a major boost to the stock market, but that rally now faces a political headwind. Traders on the floor of the New York Stock Exchange watched the major indexes edge lower Friday morning, following a day of sharp declines triggered by the election results and mounting concerns about the future of AI investments. The anxiety centers on the physical backbone of the AI revolution: the sprawling data centers that consume enormous amounts of electricity and capital. Investors fear that newly empowered Democrats will target those facilities with tougher permitting rules, environmental reviews and energy regulations — a regulatory assault that could slow the buildout and dent the profits of the tech giants that have led the market higher. The market reaction underscores how much of the recent gains have been concentrated in AI-related companies and the infrastructure that supports them. Any hint that Washington could put a brake on that spending is enough to spook investors who have poured money into the sector. The sell-off also reflects broader uncertainty about the economic agenda Democrats will pursue after their midterm wins. With affordability a top issue at the polls, the incoming majority has promised action on costs — but investors are watching closely for signs that the new Congress will pair populist economic messaging with aggressive oversight of the tech and energy sectors. For now, the question hanging over trading desks is whether the election results mark a temporary bout of nerves or the start of a longer repricing of AI-related stocks. Friday's modest morning losses suggested some investors were testing the waters, but the sharp drop a day earlier showed how quickly sentiment can turn. The stakes are high for the broader economy. The AI buildout has been one of the few reliable engines of capital investment in recent years, and any regulatory slowdown could ripple through construction, utilities and the labor market. Investors will be watching Washington for signals about how far Democrats intend to go in scrutinizing data centers and the companies behind them — and whether the AI trade can survive a new era of political risk.