News Summary

• Bank of America strategists flagged the risk of a "big" reversal in stocks following the midterm elections in November.
• A reversal in the market is a risk to economic growth, as dwindling wealth on paper could cause consumers to rein in spending.
• Separately, the bank floated the possibility that yields could move higher as investors continue to worry about inflation and the country's fiscal outlook.
• In a bear-case scenario, yields could reach levels that would materially weigh on risk assets, leading the AI bubble to pop.