TradingKey – As the U.S. midterm elections approach, in addition to focusing on the election results and their impact on economic policies, investors are also searching for clues regarding the next phase of U.S. stock market trends.

Although the S&P 500 Index remains near record highs, semiconductor and popular AI stocks have experienced a noticeable pullback recently, and market concerns over high valuations, returns on AI capital expenditure, and the interest rate outlook have not faded.

Historical data offers a relatively optimistic answer. Following the conclusion of midterm elections, U.S. stocks typically enter a phase of stronger performance. However, this pattern primarily reflects a decrease in political uncertainty, stabilizing…