Pre-market assessment of U.S. stocks Three days ago, we mentioned concentration risk combined with the risk of losing control of both congressional chambers—U.S. stocks promptly plunged. Currently, this is playing out as the classic script: a pre-election sell-off followed by a rebound, now compounded by expectations of losing both chambers. At present, aside from certain defensive consumer stocks—$MCD, $JNJ, $WMT— this is also a rebound across other sectors following an extreme historical level of concentration. However, AI stocks show no signs of stopping their decline. This mirrors the market crashes during the 2024 war and the February 2026 Iran war collapse. At least another week of declines is expected. If compared to historical extremes of bubble bursts, this entire correction has only just begun. We anticipate the downturn to persist until the end of October, with indices potentially retracing 10–15%. For individual stocks, this translates to drawdowns of 10–30%.