WASHINGTON — In a move with major implications for Wall Street, the Biden administration on Tuesday proposed a landmark bill aimed at increasing federal oversight of major technology firms, including stricter antitrust enforcement and new data privacy standards. The announcement sparked immediate volatility in stock markets, particularly in the tech-heavy Nasdaq Composite, which fell nearly 2% in afternoon trading. The proposed "Digital Fairness and Competition Act" would empower the Federal Trade Commission (FTC) to scrutinize mergers more aggressively and prevent dominant platforms from self-preferencing their own products. It also introduces new consumer protections concerning data collection and the use of artificial intelligence. “The American people deserve a fair and open digital marketplace,” said President Joe Biden in a televised statement. “This legislation will ensure that innovation flourishes while preventing monopolistic practices that harm consumers and small businesses.” Investors reacted swiftly, with shares of Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), and Meta (META) all retreating between 2% and 4% on concerns about increased regulatory costs and potential changes to business models. Wall Street analysts warned that the bill, if passed in its current form, could dampen earnings growth for large-cap tech firms and shift investor sentiment. “This is a significant risk event for big tech,” said Laura Simmons, senior equity strategist at JP Morgan. “The market is recalibrating expectations around profitability and expansion strategies.” The proposal comes amid growing bipartisan support in Congress for greater tech regulation. A Senate committee is scheduled to begin hearings on the bill next week, with several lawmakers from both parties expressing tentative support. In addition to market reactions, the legislative push also appears to be influencing corporate behavior. Sources close to the matter say that several companies are already pausing planned acquisitions and initiating internal reviews of data governance practices in anticipation of stricter oversight. Meanwhile, investors are bracing for further market turbulence. “We expect increased volatility in tech and growth sectors until there’s more clarity on the bill’s final form and likelihood of passage,” said Mark Heller, portfolio manager at BlueWave Capital. The broader S&P 500 ended the day down 0.8%, while the Dow Jones Industrial Average slipped 0.6%, reflecting broader investor caution. Analysts say the next few weeks will be crucial as markets digest the potential long-term implications of the proposed regulatory framework.