Wells Fargo Warns on US Stocks Amid AI Build-Out Fears

Wells Fargo & Co. is joining JPMorgan in cautioning investors about US stocks as September approaches, historically considered one of the worst months for equities. The bank's analysts, led by Ohsung Kwon, expect capital expenditure fears around artificial-intelligence build-out to peak. This cautious stance comes on top of uncertainty surrounding midterm elections and the sustainability of the AI-investment boom.

The team's sentiment indicator remains more positive than negative after a mid-August selloff, but they warn of 'broad cautiousness' ahead. The market is under pressure as investors grow increasingly anxious about the long-term viability of their investments in this space.