The biggest panic in the market at today's open came from two things: Meta's plan to sell some AI computing power, and the market continuing to wait for tomorrow night's nonfarm payroll data.

First, let's talk about Meta.

Many people today directly interpret this Meta news as an oversupply of AI computing power. I don't think it's necessary to jump to conclusions so quickly.

Large tech companies will naturally continue to optimize data center resources and improve computing power utilization efficiency. This is a normal operational adjustment and does not mean that AI demand has suddenly weakened.

The key is to see whether cloud vendors have started cutting capital expenditures, canceling orders, or slowing down data center construction. Currently, none of these signals have emerged.

Therefore, today's semiconductor decline is the market releasing sentiment on the back of the news, which does not change the long-term logic of the entire AI infrastructure.

It's also a good thing that institutions use such flimsy excuses to pick up bargains, because rising too fast is unhealthy. Only with sufficient turnover of chips amid a gradual rise can the uptrend be sustainable.

The technical picture also basically matches yesterday's forecast. The S&P quickly recovered after retesting around 7450, the QQQ found support around 727-730, the SPY retested the 740-742 region, and the SMH also retested the daily EMA20 again.

These levels were exactly the key support zones I mentioned yesterday. For now, buying interest remains willing to absorb at these levels.

Don't look at what Wall Street says verbally; look at capital flows.

On the macro front, after the ECB meeting, the dollar retreated, U.S. Treasury yields declined, and the market overall leans toward a dovish interpretation.

However, the factor that truly determines the short-term direction this week is still tomorrow night's nonfarm payrolls data.

If the data meets expectations or is even slightly weaker than expected, the recent pressure on growth stock valuations may further ease. If it significantly exceeds expectations, short-term market volatility might intensify.

As for the nonfarm payrolls, I gave my interpretation yesterday: Regarding this Thursday's data, White House chief economic advisor Kevin Hassett publicly spoke on Tuesday before the release, saying that the indicators currently seen suggest the jobs report will be a strong but moderate figure, with no signs of overheating or running out of control.

The probability of June's nonfarm payrolls significantly exceeding expectations is low. May's beat was mainly due to the temporary impact of the World Cup prompting companies to hire early, which is a one-time factor.

My view has not changed.

July, one of the best-performing months for the stock market each year, has just begun. What truly affects the AI sector is the upcoming earnings season and capital expenditure guidance.

As long as the industry chain leaders continue to deliver results that meet or even exceed expectations, short-term adjustments triggered by sentiment and news will hardly change the development direction of the entire AI infrastructure.

Therefore, instead of letting one day's volatility affect your emotions, it's better to continue focusing on data that can truly change industry trends.

In my view, what we are seeing now is more of a fluctuation in market sentiment, not the AI main line being disproven.

For those who are bullish on AI long-term, every sentiment-driven pullback is an opportunity to buy the dip.