Trump Comments Ease, AI & Semiconductor Rally Reignites

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1️⃣ A Day of Recovery — "One Trump Comment Changed the Market"

Monday's New York stock market staged a strong rebound after a prolonged period of weakness. The S&P 500 closed +1.56%, Nasdaq +2.21%, and Dow Jones +1.29% higher. Despite ongoing trade tensions and interest rate uncertainty, the market appears to be catching its breath.

The direct catalyst for this rebound was former President Trump's softened stance on China. In a weekend interview, he stated, "Things with China will be fine. Don't worry too much." Global investors breathed a sigh of relief at this single comment. Just days earlier, the market had been tense amid discussions of renewed high tariffs between the U.S. and China.

Following this statement, U.S. futures markets surged, and the optimistic mood continued throughout the trading day. Tech stocks, particularly Nasdaq components, recovered quickly, improving investor sentiment. The dynamic of 'Trump's words moving markets' has returned.

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2️⃣ AI & Semiconductors — Broadcom's Surprise News

The tech stock rally was decisive in this rebound. Broadcom announced an expanded partnership with OpenAI, sending its stock soaring over 10% in a single day. While details remain undisclosed, the project is understood to involve co-development of next-generation AI accelerator chips.

This immediately had positive ripple effects across the semiconductor sector, including NVIDIA, AMD, and Micron. AI-related companies once again showed they can lead the market, completely reversing the frozen investor sentiment from last week's decline.

"AI will remain at the center, even with short-term corrections." — Morgan Stanley Tech Strategist

The AI and semiconductor sectors have been so dominant that they've accounted for 40% of S&P 500 gains over the past two years. This news signals that "AI-led market momentum" may be reigniting once again.

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3️⃣ Hedge Fund Rotation — The Quiet Movement of Money

However, beneath the surface, major money movements are being detected. According to Reuters, some large hedge funds are reducing U.S. stock exposure while increasing positions in European and Asian industrial and energy companies. This is based on the assessment that U.S. markets have entered overheated territory.

Particularly, as China's economic stimulus policies gain momentum and European rate cut expectations grow, there's increasing analysis that global capital is gradually looking "outside the U.S." While this flow doesn't immediately impact the overall market, it could significantly widen the performance gap between indices and individual stocks within the next few months.

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4️⃣ Risk Shadows Still Remain

Of course, it's not all optimism. In a recent report, Morgan Stanley warned that "if U.S.-China trade conflicts don't settle, the S&P 500 could face corrections of up to 11%."

Interest rates are also a variable. While the Fed is likely to hold rates steady at its next meeting, market expectations for "rate cuts this year" remain alive. If these expectations aren't met, short-term surges could be followed by repeated corrections.

Additionally, this week marks the start of major bank earnings season. JPMorgan, Bank of America, and Citigroup will report results sequentially, and if results fall short of market expectations, anxiety could reignite.

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5️⃣ Hints for Investors — "Optimistic, But Light"

The current market is dominated by "cautious optimism". While AI and semiconductor sectors are regaining market leadership, political and trade variables could serve as anxiety triggers at any moment.

Rather than viewing this rebound as simply a 'breakthrough signal', it's wise to use it as a good opportunity to review your portfolio.

• If tech stock allocation is too high, consider some profit-taking
• If cash position is low, secure 10-15% liquidity
• Mitigate volatility through ETF-centered diversified investing

The current market flow: "AI is pulling the market up again, but remember it's dancing on massive waves of interest rates and trade."

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📅 Closing — Today's 3 Keywords

#TrumpsWords #AI_Rebound #CautiousOptimism

Today's market rebound is a symbolic case of a single comment changing the mood. But fundamentally, the market remains on unstable 'balance'. AI is the strongest pillar supporting that balance, but also the most sensitive one.

In other words,

"The spark of the AI rally is alive. But it can go out anytime if oxygen runs low."

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