Siebert Financial sees AI spending concerns as bigger stock market risk than midterm elections
SIEB•SIEB•SIEB•SIEB•Siebert Financial said AI spending poses a greater immediate risk to stocks than midterm elections, as investors seek returns to justify capital expenditures. The S&P 500 fell 1.82% and the Nasdaq dropped 2.86% on Friday.
Siebert Financial said AI spending poses a greater immediate risk to stocks than midterm elections, as investors demand returns that justify capital expenditures. The S&P 500 rose in the 12 months following every midterm election from 1946 through 2022, averaging roughly 15%, but elevated valuations could limit another post-election rally; the index was up about 10.7% in 2026. The Federal Reserve held rates at 3.75%-4.00% in a 10-2 vote last Wednesday, with both dissenters favoring an increase. Friday’s technology selloff saw the S&P 500 fall 1.82% and the Nasdaq drop 2.86%.
