New Delhi, Sept. 29 -- U.S. midterm elections are right around the corner, and they may pose a threat to the driving force behind the bull market-the AI trade.

In the lead up to the midterms, which are slated for Nov. 3, the stock market has proven quite resilient. The S&P 500 has bucked the September Effect, staying positive month-to-date. This strength comes in the face of historic Treasury yields, high oil prices, and a interest-rate hike from the Federal Reserve during a relatively quiet period in between earnings seasons. And its largely driven by strength in the tech sector. The Technology Select Sector SPDR ETF has gained 4.3% this month, while the S&P 500 was roughly flat.

But these elections could prove to be a critical for con...