Castle Securities: Bullish on U.S. Stocks' Year-End Trend, AI Stock Selloff Has Already Released Risk

Odaily News — As U.S. stocks are about to enter the final quarter of the year, Scott Rubner, Head of Equity and Derivatives Strategy at Castle Securities, is "increasingly constructive" on the upcoming trend. Investors may experience a bumpy ride in the short term, but if market weakness persists through the end of the month, this opportunity should be used to rebuild positions in core market sectors. Market sentiment toward artificial intelligence has sharply turned negative, and related positioning has also decreased. These trends should begin to reverse starting in October, first in tech stocks and then spreading to the broader market.

Scott Rubner wrote in a note to clients: "This does not mean we believe the weak September trend is over. Approaching the end of the month, the supply-demand landscape remains unfavorable, the technical backdrop continues to pose resistance to stocks, and we still believe stocks could decline further over the next two weeks. But the market landscape has already begun to change."