"With broad markets running over a bit of a rough patch in the middle of January, it's easy to catastrophize and get ahead of oneself with what could go wrong. Undoubtedly, with the Greenland situation and tariff talks in the headlines, it seemed like we were going to experience a Liberation Day 2.0 of sorts. Thankfully, things have since de-escalated, and markets are recovering ground lost in Tuesday's turbulent session."
"Even as geopolitical fears stay heightened for longer, it's earnings that are likely to determine the market's path forward. And right now, the AI boom might be ready to monetize and kick off some sort of supercycle that powers the broad basket of tech titans higher. Of course, not everyone sees above-trend earnings in this new year, especially for those who see a bumpier path ahead for the AI plays."
Broad markets saw a mid-January downturn driven by geopolitical headlines and tariff concerns, followed by de-escalation and partial market recovery. Early-year volatility has made bearish perspectives easier despite ongoing bullish catalysts like AI monetization potential. Gold's strong rally suggests markets could remain choppy through the year. Corporate earnings are expected to be the primary determinant of market direction, with AI-related revenue gains potentially creating a tech-led supercycle that lifts major technology stocks. Some institutions remain skeptical about above-trend earnings and recession risk persists as an unknown, while prominent analysts forecast sizable tech gains in 2026.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]