AI-Driven Equity Euphoria Defies Rising Yields; Midterm 'Blue Wave' Seen as Correction Trigger

US equities remain resilient despite Treasury yields hitting multi-year highs, with AI-driven optimism supporting valuations. However, analysts warn that a potential Democratic 'blue wave' in the upcoming midterm elections could trigger a sharper market correction by shifting the balance of power in Washington. The market's current complacency may be tested as political risk rises.