Wall Street’s biggest trading desks spent weeks saying the stock-market rally would resume once the election was done. On Thursday, that call backfired spectacularly.

The stock-market trading desk at Goldman Sachs Group Inc. is being flooded with calls from investors trying to get a sense of how much deeper Thursday’s technology selloff can go.

Technology stocks plunged the most since 2020 on Thursday as investors exited the sector on concerns over the artificial intelligence trade after Democrats swept the US midterm elections.

Wall Street’s biggest trading desks are urging clients to increase their exposure to US stocks, betting that lackluster investor positioning leading up to the midterm elections has created room for a year-end rally.

US stocks are primed for a year-end rebound as the midterm election removes a source of uncertainty, corporate earnings remain resilient and lackluster investor positioning leaves room for renewed buying, according to Citadel Securities’ Scott Rubner.

US stocks surged Wednesday as Democrats’ sweeping victory in midterm elections fueled optimism the Iran War could end soon, sending oil prices lower. Tech megacaps also jumped as investors bet a Democratic-controlled Congress will force companies to carry out AI spending cuts that they’ve been calling for.

Investors who rode the technology rally this year should look beyond the biggest tech stocks as growing doubts about the artificial intelligence boom rattle markets, says AllianceBernstein’s head of equities Nelson Yu.

US stocks rose as Americans headed to the polls on Election Day, with control of both chambers of Congress at stake and investors assessing potential risks to the artificial intelligence trade.

US stocks may be poised for a year-end rebound as favorable seasonality and low hedge fund positioning set the stage for a potential rally after Tuesday’s midterm elections, according to UBS Securities.

Technology stocks led US equities lower on Monday as worries around the artificial intelligence trade outweighed hopes of US-Iran diplomacy.

Wall Street’s recent risk aversion toward stocks may have created an opening for a sharp rebound, particularly in technology shares, if Anthropic PBC’s planned initial public offering reignites enthusiasm for artificial intelligence.

Retail investors who spent the past week loading up on semiconductor stocks at the center of the artificial intelligence trade are getting pummeled amid Thursday’s rout.

For Corporate America, the bar to deliver earnings growth that satisfies Wall Street’s bulls is only getting higher.

Strong corporate earnings will be pivotal to hopes for a year-end rally in global stocks, as flare-ups in fears over inflation, bond volatility and artificial intelligence spending weigh on sentiment.

US stocks ended the week inches away from record highs as investors brushed aside concerns around the artificial-intelligence spending spree and an energy crunch to prepare for the start of earnings season.

The biggest technology leaders dragged down US equity benchmarks as worries OpenAI’s revenue will disappoint bled through to other artificial intelligence bets and chipmakers.

Former Treasury Secretary Robert Rubin warned that the artificial-intelligence investment boom could bring major productivity gains but also create financial and social risks that markets may not be fully pricing.

The Black Swan author Nassim Taleb warned that a pullback in demand for US Treasuries risks creating a fault line across markets, potentially hurting a record-beating stock rally.

The S&P 500 closed at a record for the first time since August, buoyed by resilient corporate profits and the outlook for artificial intelligence-related spending.

Retail investors are poised to pile back into US stocks this month after a sharp cooldown in September, Citadel Securities’ head of equity and equity derivatives strategy Scott Rubner said.