Analysis: Dip-buying support lifted US stocks higher, with chip stocks rebounding and building momentum

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Odaily Planet Daily report: Dip-buying inflows drove a rebound on Wall Street, with chipmakers rising. Investors are betting that AI-driven trading powering this bull cycle still has further upside.

UBS’s trading division said a sharp sell-off in momentum stocks may be nearing its end, creating an opportunity for investors to rebuild positions in AI and semiconductor stocks. Part of why the sector may be forming a base is that a large amount of speculative positioning has already been unwound. UBS’s prime brokerage data shows hedge funds have cut long positions in momentum stocks and semiconductor stocks by about 5% of total market value, marking one of the largest declines on record.

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