BTIG warns that U.S. stocks will face a seasonal correction.

BTIG, a leading independent brokerage firm in the U.S., has warned that the American stock market is entering the historically weakest phase of mid-term election years, with current valuations at high levels and volatility nearing a low not seen since 2026. Since 1990, the equal-weighted S&P 500 index has typically experienced at least a 7% pullback during the months of August to October in mid-term election years. BTIG advises investors to reduce risk exposure or hedge their stock positions. Historically, the healthcare sector has shown the strongest resilience, while the technicals of the semiconductor sector have weakened.