AI Risk Needs to Clear Before Any Post-Midterm S&P Rally Begins

Wolfe Research warns that an AI 'wall of worry' may prevent a post-midterm S&P 500 rally, even if the elections serve as a clearing event. Traders expecting stocks to move higher after the midterms could be disappointed as AI-related concerns persist, keeping the market from advancing. The research suggests that AI risks need to clear before any sustained rally begins.