Concerns about AI disruption triggered record short selling of U.S. stocks by hedge funds. The technology sector was extremely polarized. Software stocks were sold off and semiconductors were bought. The new high of 50,000 points in the Dow is at odds with the weakness of the real economy, with weakening consumption and employment and increasing economic inequality. The mid-term elections may be a turning point, with a high probability of the House of Representatives changing hands, and political deadlock will restrict fiscal stimulus and form a negative cycle.