Wells Fargo has emerged as the second major bank this week to adopt a more cautious outlook on the U.S. stock market. As the market heads into historically weaker-performing months and midterm elections inject uncertainty into AI-driven trading, Wells Fargo has sounded the alarm on the prospects for U.S. stocks in September. The analysis team, headed by Chief Equity Strategist Ohsung Kwon, observed that investors are growing increasingly wary of the sustainability of the AI investment surge, predicting that a cautious sentiment will dominate the market throughout September. The team anticipates that concerns over capital expenditures for AI infrastructure will escalate. Nevertheless, they also pointed out that market sentiment indicators have remained positive following the mid-August sell-off. Additionally, JPMorgan revised its equity outlook on Monday, adopting a “tactically cautious” approach for the weeks ahead.