The US stock market could face a correction from mid-October through the midterm elections, but crypto and technology stocks may benefit afterwards if Democrats become more supportive of the CLARITY Act and>said. “I think the AI stocks are going to benefit post-midterms because the change in Congress is actually going to sort of greenlight some projects.”
Lee also expects the macroeconomic backdrop to become more supportive for risk assets. The latest jobs report has weakened the case for the maximum-hawkish Fed scenario that markets had been pricing in, which included three potential rate hikes and a 75% probability of an October increase, he said.
