The return of the AI rally: What's fueling the latest push into tech?

Leading AI stocks ripped higher to kick off this trading week as investors pile back into Big Tech.

The 8:30 Hosts Julie Hyman, Pras Subramanian, and Jake Conley weigh in on the market breadth of the equities participating in this latest rally.

some of this momentum coming back into the market. And we're going to talk more about the catalyst in depth in a moment, but it seemed to be meta and its muse um agentic product which it released recently that seems to be getting a lot of excitement. So this's sort of like, oh, here's a big product that everybody could get excited about and the supply chain is revived again and everything is fine.

Right. Because you have to think about the flow through. If there's demand for Muse, there's going to be demand for the chips and the technology that Meta is buying. So that was good for a bump for AMD, for Intel, for some of those companies.

And AMD crossing over a trillion.

That's right, crossing over a trillion market cap. But I want to point out there's a great stat. The breadth yesterday was really narrow.

Seven stocks hit highs in the S&P 500. 30 hit 52-week lows. You see the disconnect. Yes, this was a great day for tech, and that lifted a lot of the market, but there still really is a split we're seeing.

Yeah, what what's the term? Bad breath?

Bad breath. But I'm looking at this AMD chart, right? You mentioned, Julie, the return to return to grace. I mean, you see this chart and it was there's a big spike in July, and then it just sort of went low and just sort of did nothing.

And well, yeah, Semis overall.

Kind of fizzled out. Yeah, and then starting around mid-September, nuclear launch.

Um, and that is insane. Uh trillion dollar valuation like you said. I mean, is the the rally's back on? 10% yesterday. I mean, it's kind of nuts to me that, you know, I thought that after this huge run up this year, and we're talking about 100 87% this year so far, that it's going to cool off a little bit. Nope.

Well, it had cooled off and then it reignited, right? I mean the the SOX, the SOX, the Philadelphia Semiconductor Index, even though it was up for the fifth day and saw those big gains that you're talking about, it's still 15% below its record high, which was set back in June. So, even though we've had, you know, this rockiness, this sort of rebound, it hasn't brought us back to those record levels.

You know, and it's interesting we were talking about seasonality yesterday and how September tends to be not great. Uh Ryan Dietrick of Carson Group um on Twitter was sort of, it's too early to take a victory lap because we still got a little bit left in September. But he was one of the people saying like, yes, I know September tends to be bad, but this September is not going to be bad, he said. And the second half of the month, he thought would show an increase. And I guess yesterday was at least an early validation of that.