At Wednesday’s U.S. market close: the Dow was up about 0.7% to around 52,856, the S&P 500 was up about 0.6% to around 7,757, and the Nasdaq was up about 1.05% to around 26,703. Big tech stocks lifted the indexes.
What turned sentiment around intraday? AI-related earnings and guidance. Super Micro Computer (SMCI) shares at one point climbed to around +9% to +10% after its revenue and margin outlook came in above analysts’ expectations. Chip stocks Nvidia, AMD, and Micron also reportedly gained around 2% to 4%. There was also talk that the Philadelphia Semiconductor Index had ended a string of declines.
This isn’t an “AI bubble deflating”—at most, it’s “good numbers temporarily quieting the skeptics during a week of earnings checks.” Discount rates are still here, and so are financing costs; highly leveraged computing-power names like CoreWeave could still swing sharply within a single day.
My take: The index is down, so for now I’d read it as risk appetite recovering—not as a rock-solid trend floor. Any day of earnings week could change the script. Keeping each position smaller works better than making bold declarations.
Don’t treat last night’s close as gospel during the Asia-Pacific morning session. On noisy days, making fewer decisions is often the better deal.
Software and semiconductor ETFs also perked up that day. When sectors move in sync, good news for an individual stock gets amplified; on the flip side, bad news can drag others down too. In a market where everyone gets caught in the crossfire, diversification matters more than going all-in on a single AI value chain.
Macro noise, like French government bond yields, is also swirling around in the background—stories about interest rates far away can occasionally come knocking through discount rates. Don’t scare yourself out of the market before the knock comes; but once it does, don’t pretend you didn’t hear it.
The above is for reference only and does not constitute investment advice.
Follow me haha, let’s watch the market together