Markets rallied strongly yesterday driven by a massive surge in tech stocks. The market had been suffering from AI fatigue and valuation anxiety, with investors worried that tech companies were spending billions on artificial intelligence without seeing a return on investment.
However, blockbuster earnings and guidance from heavyweights Micron Technology and Qualcomm completely flipped the script. Micron blew past expectations with stunning quarterly revenue (surging to over $41 billion), proving that hardware and memory chip demand remains incredibly high. Qualcomm followed suit by drastically raising its long-term data center and non-handset revenue forecasts. This reassured investors that the recent tech sell-off was just a temporary valuation reset, not a permanent structural peak.
That’s the reason why I believe the next leg down will be short lived, it is not a bear market but a correction in a bull market. Companies will become profitable due to AI, earnings will grow, demand for commodities will grow, this is positive for the FTSE 100 and the S&P 500.