After last week's selloff, a technical rebound is plausible, particularly if inflation moderates and Treasury yields ease. However, stronger employment figures could limit expectations for aggressive Fed rate cuts, while stretched AI valuations remain a concern.
I would focus on three indicators: core inflation, the direction of 10-year Treasury yields and whether the recovery broadens beyond a handful of mega-cap technology stocks.
Even if CPI surprises positively, I would avoid chasing sharp rallies without confirmation from earnings and market breadth. For Nvidia and AMD, sustained AI demand must translate into stronger margins and free cash flow.
My strategy remains disciplined monthly ETF investing, with additional purchases during meaningful market corrections. A sustainable recovery needs improving fundamentals, not merely temporary relief from inflation fears.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
