Nasdaq-100 Jumps 15% Since July 29 as $2.5 Trillion AI Rebound Faces Test
Updated
Updated · Yahoo Finance · Aug 6
Nasdaq-100 Jumps 15% Since July 29 as $2.5 Trillion AI Rebound Faces Test
2 articles · Updated · Yahoo Finance · Aug 6
Summary
57 of 61 chip stocks in Yahoo Finance’s basket remain higher since July 29, with the median gain near 15%, even after Wednesday’s pullback interrupted a four-day surge.
Jim Bianco called the move a “MEGA short cover,” driven by piled-up bearish AI positioning, while Citadel’s July 30 purchase of Situational Awareness’s public-stock portfolio removed a prominent overhang after steep leveraged losses.
The rebound has been led by the stocks hit hardest before the July 29 low: the worst-performing fifth of the S&P 500 is up a median 8%, while the prior defensive group is down about 1%.
Microsoft, Nvidia, Amazon and Alphabet have added roughly $2.5 trillion in market value since July 29, but the rally remains top-heavy—the equal-weight S&P 500 is up less than 2% and the median member less than 1%.
With the S&P 500 just below Tuesday’s record close, the next test is whether indexes can hold breakout levels after the squeeze fades and convert a technical reset into sustained buying.