US stocks may be positioned for a year-end rebound, with favorable seasonal trends and low hedge fund positioning creating conditions for a potential rally after Tuesday’s Midterm elections, UBS Securities said.
The election could provide a catalyst for a late-year squeeze, according to Davide Montoni, UBS Securities’ Americas head of institutional equity derivatives and QIS sales. He noted that hyperscaler earnings had not delivered the reassurance investors were seeking, but said clearing the election could help unlock a rally.
Sources: Bloomberg Markets.