U.S. stocks staged a strong rebound last night, with $QQQ closing up 2.31% and climbing back above $690, more than 6% above the low reached during the panic selling a few days ago

This rebound is quite interesting:

The market had been worried that AI capital spending was overheating, compressing tech stock valuations across the board. Then CoreWeave delivered better-than-expected earnings, and sentiment quickly recovered

Nvidia, Micron, and a host of semiconductor stocks rebounded together, with capital flowing back into the AI supply chain

I think this shows at least one thing: confidence in AI has not completely collapsed, and the panic selling a few days ago really did go a bit too far

However, there was also a detail in the market worth noting:

QQQ came close to 696 at its intraday high, just a step away from the 700 mark, but failed to hold those highs into the close. Nvidia’s sudden drop after hours also caused QQQ to give back some of its gains

So for now, I’d define this rally as a strong recovery. I’m leaning toward a continued short-term rebound, but it’s too early to confirm a trend reversal

Whether it can break through 700 is the real test