Hartnett: AI Hyperscaler Announcing A Capex Cut Will Trigger The Next Great Rotation

There's still 9 months left until the Midterm elections, but to Wall Street strategists like Michael Hartnett, the biggest political event of 2026 is already the key drivers for the stock market, and as we explained last week in "Why Hartnett Is Going Long Main Street, Short Wall Street Into The Midterms",this is how Hartnett is bracing for November: 

long Main St plays, e.g. EM, small cap, banks, REITs, and other assets punished in the first half of the 2020s by big bond bear market; Hartnett expects that 2026 inflation surprises downside as AI chills labor market, and politicians address voter concerns over affordability; it's why Trump aggressive intervention to reduce price of energy, healthcare, credit, housing, electricity via Big Oil, Big Pharma, Big Banks, Big Tech means small & mid-cap best play for "boom" on Main St in run-up to US midterms; plus flip from asset-light to asset-heavy business model suggests major threat to 2020s market leadership of Big Tech/Magnificent 7…