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Bank of America Warns Bull Market Faces Major Test After November Midterms

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Strategists urge investors to turn defensive as election uncertainty, rising Treasury yields and an uneven U.S. economy threaten to expose vulnerabilities in equities

The U.S. stock market’s powerful rally could face a major test after November’s midterm elections, with Bank of America strategists warning that a Democratic sweep of Congress could trigger a sharp reversal in risk assets.

The bank’s strategists, led by Michael Hartnett, said investors should reduce exposure to riskier assets and adopt a more defensive positioning in the months ahead. They described the election as a potential “referendum on populist capitalism vs populist socialism” and flagged the possibility of a “big” reversal in stocks after voters go to the polls.

The warning comes after a prolonged equity rally that has lifted U.S. stock valuations and generated roughly $9 trillion in market gains over the past two years. BofA said the increase in household wealth from higher stock prices has become an important source of economic support, creating a potential vulnerability if markets reverse sharply.

“Investors should eschew risky assets and head into defensive investment in the near-term,” Hartnett’s team wrote in a note on Friday.

The strategists said they favor gold as a hedge against risks associated with what they described as a K-shaped economy and an electorate that could deliver an “it’s the economy, stupid” midterm result.

The K-shaped economy refers to the widening divergence between higher-income households, which have benefited from rising financial and property values, and lower- and middle-income households facing greater pressure from inflation and a difficult labor market.

That divide could become politically significant if economic conditions deteriorate or financial markets weaken. Higher-income households tend to have greater exposure to equities and other financial assets, meaning a prolonged market decline could weaken the wealth effect that has supported consumer spending.

BofA said the U.S. economy’s recent resilience has been supported in part by the increase in household wealth created by rising asset prices. That creates a feedback risk: if stocks fall significantly, consumers could respond by cutting spending, potentially weakening economic growth and corporate earnings.

Treasury Yields Emerge As A Bigger Threat

BofA also warned that the bond market could become the more immediate threat to the equity rally.

Strategists said yields could move substantially higher if investors become more concerned about inflation and the U.S. government’s fiscal position. A sharp rise in borrowing costs would increase financing expenses for businesses, put pressure on equity valuations and make bonds more attractive relative to stocks.

In a more severe scenario, higher yields could become the catalyst for a broader risk-off move and potentially puncture the market’s enthusiasm for artificial intelligence stocks.

“Bonds end booms and bubbles, and this one ends once ‘higher yields-lower dollar’ vigilante event forcing fiscal policy U-turn, and asset allocation from stocks to bonds rise,” the strategists said.

They described rising yields as a “canary in the coalmine” for investors.

The 10-year U.S. Treasury yield has already climbed to around 4.67%, above the 4.5% level closely watched by investors. So far, the increase has not been enough to derail equities, but a further rise could put greater pressure on stocks whose valuations depend heavily on expectations of strong future earnings.

The concern is particularly relevant for large technology and AI companies. Their share prices have risen sharply as investors anticipate years of rapid growth in AI infrastructure, software and computing demand. Higher discount rates can reduce the present value investors assign to those future cash flows, making high-growth stocks especially sensitive to movements in Treasury yields.

Election Risk Adds Another Layer Of Uncertainty

The November midterms could introduce another source of volatility.

BofA’s warning centers on the possibility that Democrats could win control of both chambers of Congress. Such an outcome could alter expectations for taxation, spending, regulation and fiscal policy, potentially prompting investors to reassess sectors and companies that have benefited from the current policy environment.

The election could also become a referendum on the distribution of economic gains. While financial markets have performed strongly, the benefits of higher asset prices have been unevenly distributed, leaving households with little exposure to stocks or property more vulnerable to inflation and employment pressures.

That dynamic could increase the importance of economic conditions in determining voter behavior and, in turn, market expectations.

Other Wall Street strategists have also warned of elevated volatility as the election approaches.

Oppenheimer analysts said in an earlier note that in midterm years when the president is serving a second term, the S&P 500 tends to experience a correction during the third quarter.

Goldman Sachs strategists have also pointed to a seasonal pattern. In all midterm years since 1974, the S&P 500 has produced a median return of 0% from August 1 through election day in November.

Those historical patterns do not establish that stocks will fall this year, but they highlight a period when political uncertainty and changes in expectations about economic policy have historically increased market sensitivity.

The Bull Market Faces A Three-Way Test

The risks identified by BofA ultimately converge around three forces: asset valuations, Treasury yields and the distribution of economic growth.

The equity rally can continue if corporate earnings remain strong enough to justify elevated valuations, inflation stays contained, and Treasury yields remain manageable. Strong earnings would also help offset concerns about expensive technology stocks and the sustainability of AI-related investment.

The risk is that higher inflation or worsening fiscal concerns push bond yields significantly higher at the same time that economic dissatisfaction becomes more politically important. Such a combination could weaken both the economic backdrop and investors’ willingness to pay high prices for future earnings.

For now, the market has tolerated higher yields and continued to reward companies delivering strong earnings growth. BofA’s warning is that this tolerance may not last if the bond market begins demanding a substantially higher return to hold U.S. government debt. That makes the months between now and the November elections particularly important for investors.

Want a Job at OpenAI? Product Manager Says These Are What You Need

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People seeking jobs at OpenAI should demonstrate genuine enthusiasm for artificial intelligence, actively use the company’s products, and show evidence of what they can build, according to a product manager at the AI company.

Ty Geri, who joined OpenAI in 2025 as a product manager, told Business Insider that the advice applies across roles, including engineering, research, product management and data science.

“I think OpenAI tries to hire people who are really passionate, and care, and want to be a part of this mission,” Geri said.

For prospective applicants, that means demonstrating more than technical qualifications or a strong résumé. Geri said candidates should incorporate AI products into their own work and daily workflows so they understand their capabilities and limitations firsthand.

“Try to bring these products into your life, into your workflows,” he said.

Geri acknowledged that OpenAI’s products can sometimes be imperfect or unfinished, but said that is part of the company’s approach to development. Candidates should be comfortable experimenting with technology that is still evolving and be willing to help push its capabilities.

“Try to bring these products into your life, into your workflows,” he said, adding that some products may be “a little rough today” because the company wants employees who are prepared to “push on the frontiers.”

Building Matters As Much As Credentials

Geri’s comments point to a hiring philosophy that places considerable value on evidence of experimentation and execution. He said OpenAI expects employees to engage in “a lot of building in public,” allowing colleagues to see what they are creating and test their work themselves.

He contrasted that approach with a more traditional development model in which someone can spend years working privately before revealing a finished product.

“You sit in a dark room, you come out three years later, and you’re like: ‘Voila, magic,’” Geri said, describing what he sees as a flawed approach to product development.

“That doesn’t fly at OpenAI.”

For applicants, the implication is that a portfolio of projects, experiments or publicly available work can provide a stronger demonstration of ability than simply describing skills on a résumé.

Geri said OpenAI employees are generally willing to experiment with new ideas. If an initial product or idea is not successful, colleagues may build on it and try again.

“If the product you put out is ‘not quite it yet,’” he said, others at the company will try again.

That willingness to iterate is central to what Geri described as OpenAI’s culture of experimentation and “big swings.”

Competition for AI Talent Is Intense

Geri’s advice comes as leading AI companies compete aggressively for engineers, researchers, product managers and other specialists capable of developing increasingly sophisticated models and applications.

A former OpenAI intern told Business Insider in July that prospective candidates should “go broad, specialize, and build,” while another OpenAI employee said a cold message on LinkedIn had helped him secure a position.

Career coach Sundeep Teki, who helps place talent at AI companies, said in June that OpenAI has one of the industry’s most difficult technical interview processes. That makes preparation particularly important for technical candidates, while maintaining a visible body of work can also help applicants get noticed.

AI companies have increasingly recruited talent through public technical work, meaning contributions to GitHub and other public projects can serve as an informal demonstration of expertise.

For candidates targeting OpenAI, the combination of technical preparation, hands-on use of AI tools and publicly demonstrated projects could therefore be particularly valuable.

Geri also said the willingness to experiment is one of the main differences between OpenAI and his previous employer, Google. The distinction is not necessarily about technical capability, but about the speed and willingness to test unconventional ideas.

“Larger companies in the space can sometimes be a little bit slower,” Geri said.

At OpenAI, he said, employees are encouraged to take risks and test ideas even when the outcome is uncertain.

That environment can be demanding. Geri admitted that the pace and uncertainty of experimentation can be stressful, but said it is also part of what makes working at the company appealing.

“It definitely stresses me out,” he said, “but I think it’s part of the fun.”

For job seekers, Geri’s message is that knowing AI theory is not enough. Candidates need to show curiosity, use the technology themselves, build things, share their work, and demonstrate that they are comfortable operating in an environment where products and ideas can change rapidly.

Wells Fargo Moves Toward Tokenized Deposits With 24/7 Cross-Border Payments

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Wells Fargo is preparing to take another significant step into blockchain-based banking by launching tokenized deposits for corporate and commercial clients this fall.

The initiative marks a growing convergence between traditional financial institutions and blockchain infrastructure, as banks increasingly explore how distributed ledger technology can modernize payments without abandoning the regulated banking system.

The initial service is expected to focus on round-the-clock transfers between dollars and pounds, using Wells Fargo’s own blockchain.

By moving deposits onto a blockchain-based settlement environment, the bank aims to make international corporate payments faster, more flexible and potentially more efficient than conventional systems that depend on banking hours, intermediary institutions and batch-based settlement processes.

Tokenized deposits are different from cryptocurrencies and stablecoins, even though they share some underlying technological concepts. A tokenized deposit represents a claim on money held within a commercial bank, with the bank maintaining the corresponding deposit relationship.

This allows financial institutions to apply blockchain technology to existing forms of bank money while preserving the role of regulated banks in the financial system. Cross-border payments can involve multiple banks, currency conversions, compliance checks and settlement windows.

A blockchain-based system operating continuously could reduce some of the delays associated with these processes. Businesses could potentially move dollar-denominated bank money into pound-denominated balances outside traditional banking hours, creating a more responsive treasury environment.

The decision to begin with dollar-to-pound transfers is also strategically important. The US dollar and British pound are among the world’s most heavily traded currencies, making them natural candidates for testing blockchain-enabled foreign exchange infrastructure.

A successful implementation could provide Wells Fargo with a foundation for expanding tokenized deposit services to additional currencies, payment corridors and corporate use cases. The development highlights how major banks are approaching digital assets differently from the early cryptocurrency industry.

Institutions can use blockchain rails to improve the movement of traditional money. This approach could become increasingly attractive as financial regulators and policymakers develop clearer frameworks for digital assets, stablecoins and tokenized financial instruments.

Wells Fargo’s move reflects broader competition among global banks. Financial institutions are exploring tokenized deposits, wholesale central bank digital currencies, stablecoins and blockchain settlement networks as they compete to define the infrastructure of future payments.

The underlying objective is similar: make money programmable, transferable and available around the clock while maintaining institutional controls over compliance and risk. Tokenized deposits must operate within strict regulatory, cybersecurity and anti-money-laundering requirements. Interoperability will matter.

A bank-controlled blockchain can provide efficiency within its own ecosystem, but the broader value of tokenized money depends on its ability to interact with other financial institutions and payment networks.

For Wells Fargo, the fall launch therefore represents more than a new corporate payment product. It is a practical experiment in transforming commercial banking infrastructure through blockchain technology.

If the system proves reliable and scalable, tokenized deposits could evolve from a limited cross-border payment service into a broader foundation for institutional digital finance. The significance is ultimately less about putting dollars and pounds on a blockchain and more about changing how bank money moves.

With major financial institutions increasingly embracing tokenization, blockchain may be shifting from an alternative financial architecture into a core technology layer for global banking.

Samsung Galaxy Phones Could Become a Major Gateway for Stablecoin Payments

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Samsung’s reported plan to bring stablecoin support to Samsung Wallet could mark a significant step in the mainstream adoption of digital assets.

With hundreds of millions of Galaxy smartphones in circulation globally, integrating stablecoins directly into a widely used mobile wallet could move crypto payments beyond specialist applications and exchanges and into everyday consumer finance.

However, Samsung has not yet confirmed which stablecoin partner it may work with or when the feature could launch. Stablecoins are designed to maintain a relatively stable value by being pegged to assets such as the US dollar.

Their appeal comes from combining some of the programmability and transferability of blockchain networks with a value structure that is less volatile than Bitcoin or other cryptocurrencies. For consumers, that makes them potentially more practical for payments, remittances, transfers and digital commerce.

Samsung Wallet already serves as a central hub for several digital services, including payments, identification and other forms of mobile credentials.

Adding stablecoin functionality could therefore create an important bridge between traditional digital payments and blockchain-based money. Instead of requiring users to download a separate crypto wallet, manage unfamiliar applications or interact directly with decentralized exchanges.

Stablecoin payments could eventually become another option within an interface millions of Galaxy users already understand. The biggest question is which blockchain and stablecoin ecosystem Samsung would choose.

The company has not announced a specific partner, leaving open the possibility of collaboration with an established stablecoin issuer, a blockchain network, a financial institution, or several companies simultaneously. That decision would have major implications for transaction costs, speed, geographic availability and regulatory compliance.

Samsung would need to navigate the complicated regulatory environment surrounding digital currencies. Stablecoin rules are developing rapidly across major markets, with governments increasingly focused on reserves, consumer protection, money laundering controls and the responsibilities of issuers and payment providers.

A global wallet deployment would require Samsung to account for different rules across jurisdictions rather than treating stablecoins as a single worldwide payment product. Security would be equally important.

A wallet holding or transferring stablecoins creates new responsibilities for both Samsung and its users. Private-key management, authentication, fraud prevention and recovery mechanisms would need to be designed carefully. Samsung’s existing security infrastructure could provide an important foundation.

But cryptocurrency transactions introduce risks that differ from conventional card payments because blockchain transfers can be difficult or impossible to reverse. The strategic implications extend beyond Samsung itself.

If stablecoins become a native feature of smartphones, the competitive landscape between banks, payment companies, fintech platforms and crypto networks could change considerably. Mobile manufacturers could become important distribution channels for blockchain-based financial services, giving stablecoin issuers direct access to enormous consumer audiences.

Samsung’s potential move is especially significant because adoption depends not only on blockchain infrastructure but also on accessibility. Stablecoins can have strong technical capabilities, but their usefulness ultimately depends on whether ordinary people can access and spend them easily.

Samsung has yet to confirm a launch date or partner, so the proposal should not be treated as a finalized product rollout. Nevertheless, the reported direction illustrates how blockchain payments are increasingly moving toward mainstream consumer technology.

If Samsung successfully integrates stablecoins into Galaxy devices, the smartphone could become an even more important gateway between traditional finance and the emerging digital-asset economy.

When Art Turns Toward Software, Code, and Digital Memory

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The relationship between art and technology is changing. For decades, artists have used software as a tool for producing images, animations, installations, and interactive experiences.

Increasingly, however, artists are turning their attention toward software itself—its structures, aesthetics, failures, histories, and cultural consequences.

Recent projects involving Jan Robert Leegte, Rebecca Rose, and the studio behind Pirate Nation demonstrate three very different approaches to understanding digital art and its rapidly evolving ecosystem.

At Art Basel Zero 10, Jan Robert Leegte examines what it means to make art about software rather than simply making art with it. His solo presentation brings together JPEG, Sightings, and Orbits, works that investigate the visual and conceptual language of digital technology.

Instead of treating software as an invisible instrument operating behind the artwork, Leegte places its mechanisms and formats in the foreground. This approach is significant because software has become one of the defining cultural materials of contemporary life.

JPEG compression, interfaces, digital images, and algorithmic systems are not merely technical infrastructure; they influence how people see, communicate, store memories, and understand reality. By transforming these systems into subjects of artistic inquiry, Leegte challenges audiences to consider the hidden architecture behind everyday digital experiences.

Rebecca Rose takes a different route, connecting digital animation with historical painting and Mexican cultural heritage. Her debut of Popol Vuh at Mexico City’s Museo Diego Rivera Anahuacalli, presented as part of 8NAP Art’s Digital Encounters exhibition, creates a dialogue with the legacy of Diego Rivera.

The project demonstrates how digital art can engage with historical traditions without simply reproducing them. Animation provides Rose with a medium capable of bringing historical imagery, mythology, and artistic references into motion.

In this context, technology becomes a bridge between cultural memory and contemporary expression. The presentation also highlights how institutions associated with traditional art history are increasingly becoming spaces for digital experimentation.

Meanwhile, the closure of Proof of Play, the studio behind Pirate Nation, presents a very different but equally important development. Rather than allowing its work to disappear behind a corporate shutdown, the studio is open-sourcing its code and releasing its artwork under a CC0 license.

That decision transforms the end of a commercial project into an act of preservation and redistribution. For digital culture, this matters enormously. Software and digital artworks can become inaccessible when companies disappear, servers shut down, or proprietary infrastructure is abandoned.

Open-source code and CC0 licensing offer another possibility: communities can study, modify, preserve, and build upon cultural artifacts rather than allowing them to become digital ruins.

These developments reveal a broader transformation in digital art. Leegte investigates software as artistic subject matter. Rose uses digital animation to connect contemporary practice with historical culture.

Proof of Play demonstrates how openness can preserve digital creations beyond the lifespan of a company. The future of digital art may therefore depend not only on increasingly sophisticated technology, but also on how artists, institutions, and communities understand ownership, preservation, and software itself.

Digital art is no longer simply art created by computers. It is becoming a way of questioning the systems that shape modern culture—and deciding what should survive when those systems change.