Wells Fargo and JPMorgan Chase are cautious about US stocks, concerned about the AI investment boom and midterm elections

Wells Fargo and JPMorgan Chase are cautious about the future of the US stock market, mainly concerned about the sustainability of the AI investment boom and the uncertainty brought by the midterm elections. The Ohsung Kwon team, Chief Equity Strategist at Wells Fargo, expects the AI capital expenditure cycle to enter its later stages in 2027, with growth rates peaking in the next quarter. Federal Reserve Chairman Kevin Walsh made hawkish remarks, pushing the market to increase its bets on raising interest rates this year. Analysts from Wells Fargo predict that the trend of suspending data center projects will heat up, and the approaching midterm elections will lead to more project suspensions in the future.