Citadel Securities' Rubner: AI-themed trades will regain strength after the midterm elections

Citadel Securities' Scott Rubner said investors are likely to pile back into AI-themed trades next month once the crucial US midterm elections are over. "Everyone is treating the midterms as an event-risk clearing event, and specifically, I think AI can outperform again by then," Rubner, head of equity and derivatives strategy at Citadel Securities, said in an interview on Tuesday. "The feedback we're getting from clients is, 'It's fine to buy at higher prices, but we don't want to buy ahead of a major political event,'" he added. The midterm results will clarify the outlook for AI regulation and other industry policies. If Democrats win control of both chambers of Congress, Wall Street strategists expect tighter regulation, which could trigger further selling in semiconductor stocks.