A strong rebound in technology stocks helped propel the Nasdaq 100's market capitalization up by $3.5 trillion in four days.

Strong earnings boosted investor confidence in the prospects of artificial intelligence, driving the Nasdaq 100 index up 9.3% in just four days, marking its strongest rally since April 2025 and adding $3.5 trillion to its market capitalization. The tech sector rally was broad-based, with gains seen in semiconductors, software companies, and hyperscale data center operators making massive capital expenditures. Strong second-quarter results convinced investors that massive AI investments will not only continue but have already begun to pay off for some major companies. “The days of shorting the big capital spenders (i.e., hyperscale data centers) and going long the small capital spenders are over, and I think that’s a good thing,” said David Rainville, chief manager of the Sycomore Sustainable Tech Fund. “It’s no longer a simple binary trade.” However, the latest earnings cycle also revealed a clear divergence among tech giants: investors favored companies demonstrating tangible AI revenue, while remaining cautious about those with less apparent gains. (Jinshi)