Scenario analysis by the J.P. Morgan Market Intelligence team shows that the S&P 500 index is more likely to rise than fall after this week's midterm elections. In the scenario where J.P. Morgan traders determine the highest probability, that is, the “blue wave” scenario, the index fluctuates between a 0.25% drop and a 0.5% increase; in all other scenarios, the index is expected to rise. The team pointed out that the main risk is that the market may take advantage of improved liquidity expectations to cut positions in the AI sector. Furthermore, corporate executives linked to Trump's campaign donations are also at risk of investigation. The team led by Andrew Taylor wrote in the research report: “Many investors are worried that tighter regulations will trigger a sell-off in the AI sector. However, it is difficult to implement relevant policies. Trump has stated that he will not sign any laws restricting the expansion of AI, and the Democratic Party is unable to obtain an absolute majority of seats in the Senate and House of Representatives that can bypass the presidential veto. Investors who are optimistic about AI will be an opportunity to buy on dips if there is a subsequent pullback.”

Scenario analysis by the J.P. Morgan Market Intelligence team shows that the S&P 500 index is more likely to rise than fall after this week's midterm elections. In the scenario where J.P. Morgan traders determine the highest probability, that is, the “blue wave” scenario, the index fluctuates between a 0.25% drop and a 0.5% increase; in all other scenarios, the index is expected to rise. The team pointed out that the main risk is that the market may take advantage of improved liquidity expectations to cut positions in the AI sector. Furthermore, corporate executives linked to Trump's campaign donations are also at risk of investigation. The team led by Andrew Taylor wrote in the research report: “Many investors are worried that tighter regulations will trigger a sell-off in the AI sector. However, it is difficult to implement relevant policies. Trump has stated that he will not sign any laws restricting the expansion of AI, and the Democratic Party is unable to obtain an absolute majority of seats in the Senate and House of Representatives that can bypass the presidential veto. Investors who are optimistic about AI will be an opportunity to buy on dips if there is a subsequent pullback.”