Why the Wall Street Stock Exchange may be in for a shock by the end of the year

The New York Stock Exchange reached its 2018 peak in September of that year, but a sudden market decline followed due to the Federal Reserve's interest rate hikes and the Democrats' victory in the November midterms. A similar situation is unfolding now, with the S&P 500 up 32.3% in Donald Trump's second term, comparable to 33.3% at the same point in his first term.

Citi warns that a Democratic-controlled Congress could clash with the White House, leading to a political deadlock. However, some sectors driving growth in Trump's second term, such as energy and semiconductors, differ from those in his first term. The Federal Reserve's interest rate decisions and factors like the Iran conflict and artificial intelligence may have a greater impact on the market than the upcoming midterms.