**[Wells Fargo Joins JPMorgan in Adopting a Cautious Outlook on U.S. Stocks]** According to a report by Jinse Finance, on September 2, Wells Fargo became the second bank this week to adopt a more cautious stance on U.S. stocks. As the market enters one of the historically weakest months of the year, coupled with the uncertainty artificial intelligence (AI) trading faces due to the midterm elections, Wells Fargo issued a warning about the outlook for U.S. stocks in September. The Wells Fargo analyst team, led by Chief Equity Strategist Ohsung Kwon, stated that investors are increasingly concerned about whether the AI investment boom can be sustained. Heading into September, the market is expected to exhibit a "broadly cautious" sentiment. The team predicts that concerns surrounding capital expenditures for AI infrastructure development will peak. However, they noted that sentiment indicators remain more positive than negative despite the sell-off in mid-August. Kwon's team is not the only institution to adopt a more cautious stance this week. On Monday, JPMorgan also adjusted its stock outlook for the coming weeks to "tactically cautious." This shift followed hawkish remarks from Federal Reserve Chairman Kevin Warsh, which heightened market expectations for further interest rate hikes this year. Wells Fargo analysts cited two main reasons for their more cautious outlook: concerns about overinvestment in the AI sector and the potential for more pauses in data center construction as the midterm elections approach. In a report to clients on Tuesday, Kwon wrote, "AI demand will continue to accelerate, but the economy and capital will be limiting factors." He added, "We believe that if economic growth is insufficient to support further investment, the AI capital expenditure cycle could enter its later stages by 2027. Growth is expected to peak in the next quarter." Meanwhile, Wells Fargo analysts anticipate that the trend of pausing data center projects will continue to gain momentum. As the midterm elections draw closer, more project suspensions are likely to occur in the future.