[UBS: AI sector down 5% last week, underestimated correlation between tech and non-tech sectors in upward movement] According to Deep Tide TechFlow, citing research from Tide Research, UBS Group's October 19, 2026 report noted that the AI sector fell 5% last week, while 400 non-AI stocks rose 2.5%. The U.S. 10-year yield climbed above its 1-year average by 1.5 standard deviations for the seventh time in the past year. Hyperscale vendors' cloud revenue is expected to grow 60% year-over-year in Q3, with cloud revenue projected to reach $574 billion over the next four quarters, approximately 15% higher than consensus estimates. UBS believes the implied correlation is too low, and if pressures from interest rates and oil prices ease, midterm election risks do not materialize, and earnings reports exceed expectations, tech and non-tech sectors could rise in tandem. UBS recommends buying out-of-the-money S&P 500 December call options, buying industrial call options, selling consumer staples call options, going long utilities against consumer staples, going long KOSPI against NIFTY 50, and reducing energy exposure.