AI Indicator Of Firm Famous For Tesla Bet Flashes 'Cautious' Sign For US Stock Market This Week

Qraft Technologies’ AI Risk Indicator has pointed to a risk level of 22 for the week of Nov. 7, in the "cautious" range, an increase from the risk level of 13 recorded the prior week. This indicates that the model anticipates relatively stable potential equity market returns.

What Happened: Qraft’s AI model forecasts median risk in the near term in the equities market relative to historic levels, the company explained in a report. Over the past 20 years, when risk has been in this range, U.S. large-cap equities had an annualized volatility of 23.28%, it said.

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Some of the ETFs run by the company include Qraft AI-Enhanced U.S. Large Cap ETF QRFT and Qraft AI-Enhanced U.S. Large Cap Momentum ETF AMOMwhich have gained over 5% and 7% the in last one month, respectively. Qraft gained prominence with its bets on Tesla Inc. TSLA via AMOM and correctly predicting changes in the trading price of the electric vehicle maker's stock.

Key Events: The U.S. mid-term elections and the consumer price inflation report are the significant events that traders and investors are watching out for this week. Major Wall Street indices closed in the green on Monday as the focus shifted toward these events.

Price Action: The SPDR S&P 500 ETF Trust SPY ended Monday’s session 0.96% higher while the Vanguard Total Bond Market Index Fund ETF BND lost 0.39%.

“Markets are expected to react positively to Republican control because even controlling one house would limit fiscal spending. Additional fiscal spending has the potential to undermine tighter monetary policy and therefore is considered a market risk,” ANZ Research said in a note.

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