Strong tech earnings calm AI fears as markets search for stability

• NVIDIA's impressive earnings, with 75% revenue growth, are calming immediate AI fears, especially for hardware companies.
• The software sector, including Salesforce, is experiencing anxiety and repricing, but price action suggests a potential floor and future clear winners/losers.
• Geopolitical dynamics (US-China) are shifting dealmaking away from China-dependent companies and emphasizing domestic investment in AI and infrastructure.
• A rotation into energy and utilities is evident, driven by infrastructure needs and geopolitical conflicts impacting oil prices.

Strong earnings from NVIDIA are easing immediate AI fears, but underlying anxiety in the software sector persists, leading to a repricing. Geopolitical tensions, particularly between the US and China, are influencing dealmaking and reinforcing domestic spending on infrastructure and chips. Meanwhile, a rotation into the energy sector is observed as markets search for stability amidst ongoing volatility.