The Nasdaq-100 index has recovered $3.5 billion in market value over the past four trading sessions, marking a sharp reversal of the selling pressure that had weighed on US technology stocks.
The rebound was driven by a series of quarterly earnings reports that exceeded analyst expectations, reinforcing investor confidence in the long-term growth prospects of the artificial intelligence sector.
This recovery follows a period of significant volatility, including a fourth consecutive day of declines earlier in the month as concerns over AI spending sustainability triggered a broad tech selloff. The recent stabilization suggests that the market's initial reaction to valuation concerns may have been overdone, with fundamental performance data now taking precedence over speculative fears.
The Nasdaq Composite and S&P 500 both posted gains in the latest session, extending the recovery momentum that began after the index's worst July decline since 2025. Investors appear to be reassessing the risk-reward profile of large-cap tech names, particularly those with clear revenue visibility from AI infrastructure and software deployments.
The shift in sentiment has helped stabilize the broader market, with the Dow Jones Industrial Average also participating in the rally.
This development comes as traders look ahead to key central bank decisions, including the Reserve Bank of Australia's rate announcement on August 12 and Norges Bank's decision on August 20, which could further influence global liquidity conditions and risk appetite.