Will it increase after the elections? Due to Wall Street’s bullish stance, futures selling pressure on US stocks may increase by $ 135 billion.

The elections are over,US stocks Will it arise?wall Street Major trading desks had previously bet that the money would return at the end of the midterm elections, but they were left on the fence as selling pressure on Thursday left them reeling.

Bloomberg News reported that JPMorgan Chase, Citadel Securities and UBS Securities are increasingly monitoring the market after the election, but concerns such as AI investment returns and financing costs have not gone away, and the market is also facing pressure from systemic funds to further reduce their holdings.

The reasons for the rally in these trading portfolios are the same: The market has significantly reduced its stock positions ahead of the election. Once the uncertainty about the elections ends, there will be scope for OTC funds to re-enter the market.Goldman Sachs Hedge funds reduced their exposure to stocks in October at the fastest pace since March, data showed.

Scott Rubner, head of equity and equity derivatives strategy at Castle Securities, said on Wednesday that as the election ends, volatility may return to normal, and many of the largest buy orders will return, making the most likely direction for U.S. stocks to move through the end of the year. JPMorgan also expects the surge in technology stocks to spread to more stocks.

However, a sharp turn from Wednesday’s rise to Thursday’s sharp decline sent the fund back into the red.

John Flood, head of America’s equity trading execution services at Goldman Sachs, said that long-term investing institutions have “frozen out” again, and hedge funds have begun to sell some of the shares of large AI cloud companies they had bought the day before.

Flood described Wednesday as one of the busiest trading days of the year for the trading desk, but Thursday was quite the opposite. “Phone lines are ringing off the hook, with everyone trying to figure out what’s going on in the markets,” he wrote in a note to clients. “Unfortunately, we haven’t seen many leads.”

Alex Altman, head of global equity strategy at Barclays, was one of the few who was already skeptical. He believes market skepticism about the returns on AI investments and the cost of infrastructure financing will not go away after the elections are over.

The next pressure may also come from systematic funds that adjust their positions according to market trends. According to Barclays models, volatility control funds could reduce the proportion of stock allocations by about 30 percentage points, which would become one of the largest single-day adjustments since the market turmoil during the pandemic; About $135 billion worth of US stock futures could be sold in the next 24 to 48 hours.

Barclays also predicted Thursday’s sales of leveraged ETFs could break records due to rebalancing. Retail investors have also not actively acquired. Wanda Research data shows that by 3 p.m. Retail investors sold a net $338 million in individual stocks on Thursday New York time.

However, a one-day decline is not enough to invalidate the post-election bullish argument. After the end of normal trading on Thursday, US stock futures first fell and then reversed; As of around 9:16 p.m., according to CNBC quotes. Eastern time, S&P 500 futures were up 0.20%, Nasdaq 100 futures were up 1.01%, and Dow Jones futures were still down 0.62%.