According to Jin10, CITIC Securities said U.S. technology stocks have fluctuated around changes in high-frequency AI narratives in the second half of 2026, while the transmission of bond CDS movements to stock prices has added to short-term market volatility. The decline in U.S. semiconductor hardware stocks since early October has broadly followed the market’s trading logic since mid-June, but pressure from macro liquidity and midterm election uncertainty has outweighed temporary pessimism about AI. With major macroeconomic and industry disruptions largely cleared over the past one to two weeks and AI optimism returning, CITIC Securities sees potential for a rebound in U.S. technology stocks after the midterm elections and recommends semiconductor hardware as its top priority.