To The Moon

Risk assets staged a powerful rebound Wednesday, lifting Wall Street out of the hole created earlier this week by AI-driven panic selling.

• $S&P 500(.SPX)$ : +0.8%

• Nasdaq Composite: +1.3%

• Dow Jones Industrial Average: +308 points (+0.6%)

• Hot Stock: $Axon Enterprise, Inc.(AXON)$ (+17.6%) Biggest Loser: GoDaddy (-14.3%)

  Best Sector: Technology (+1.8%) Worst Sector: Industrials (-0.8%)

After starting the week down 1.1%, the Nasdaq is now up 1.2% week to date, underscoring the speed of the turnaround.

From Panic to Rally: The “Citrini” Effect Reverses

Monday’s selloff was triggered by a viral blog post from James van Geelen and Alap Shah of Citrini Research, which amplified fears that artificial intelligence could devastate established companies across financials and consumer discretionary sectors. The speculative unwind hit software and tech particularly hard.

But by Wednesday:

• Momentum strategies rebounded

• High-beta risk trades surged

• Technology led the advance

• Crypto and meme stocks joined the rally

Investors had time to digest the scenario, and push back against it…

One key catalyst was messaging from Anthropic, which emphasized collaboration with enterprise software firms rather than displacement during its recent event. That narrative shift helped cool fears of immediate AI-driven disruption.

Macro Counterargument: AI Shock Overstated?

Strategists argued that the “AI destroys demand” thesis requires extreme assumptions:

• Near-total labor substitution

• Minimal fiscal response

• Limited investment absorption

• Unlimited compute scaling

Historically, technological revolutions have not eliminated labor or triggered runaway growth. Instead, they have largely maintained trend GDP growth near 2% in advanced economies.

In that context, AI may offset structural drags like aging populations and deglobalization, not create economic collapse.

The result: short covering and aggressive dip-buying…

Nvidia Earnings: Another Beat, But Stock Gives Back Gains

After the close, all eyes turned to $NVIDIA(NVDA)$

AI

The chip giant once again delivered:

• Adjusted EPS: $1.62 (vs. $1.53 expected)

• Data center revenue: $62.3 billion, up 75% year over year

• Q1 revenue guidance: $78 billion (vs. $73 billion expected)

CEO Jensen Huang struck an optimistic tone, highlighting accelerating enterprise AI adoption and continued infrastructure investment. He also suggested memory chip constraints would not materially impact mid-70% gross margins.

Despite the strong numbers, Nvidia shares gave back most of their after-hours gains, rising just 0.6% by the end of the conference call, suggesting lofty expectations were already priced in.

What This Means for Traders

The week’s action highlights three important themes:

1. AI volatility cuts both ways: panic unwinds can reverse quickly.

2. Positioning remains crowded in tech : strong earnings may not guarantee upside.

3. Risk appetite is still alive $Palantir Technologies Inc.(PLTR)$ $Oracle(ORCL)$

[Salute]

If you found this summary helpful, be sure to like, comment and subscribe to stay informed on the economic trends shaping markets.

This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.

[Salute]

@TigerStars

@TigerEvents

@Tiger_comments

@CaptainTiger

@TigerCommunity