Market strategists at Jiahuang Capital said that as the US midterm elections approach and the market enters a phase of weak seasonal performance, the risk of a pullback of up to 10% in US stocks is rising. The team led by Lori Calvasina pointed out that in the past 10 years, the S&P 500 index fell in September for 5 years. They said that with artificial intelligence triggering some backlash as an election issue, the US midterm election cycle may increase fluctuations in AI transactions, and the Iran war is still another negative factor. “The risk of a level 1, or the more common 5%-10% pullback, has increased for several reasons,” Calvasina said. She added that concerns about inflation and interest rates are overshadowing recent improvements in consumer confidence.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.