With the slightly weaker-than-expected US PPI data, the outdated logic of 'Fed rate cuts' has once again sparked optimism in the US stock market.

Among them, as one of the biggest victims of this round of sell-offs, semiconductor stocks also vigorously pushed the rebound of US stocks. From the strength of the rebound, $PHLX Semiconductor Index (.SOX.US)$ the four-day cumulative rebound was 11.66%, while during the same period, the NASDAQ rose 6.12% and the S&P 500 index rose 4.52%.

As a representative of the US stock market, global AI leader NVIDIA has rebounded by more than 17% in four days. Using the most eye-catching algorithm, the company's market cap increased by more than $420 billion in four trading days. In addition, data shows that NVIDIA contributed about 22% to the rise of the S&P 500 index during the same period, more than twice the contribution of any other single stock's rise.

NVIDIA's big rebound also pushed up the broader market. In addition to NVIDIA, other semiconductor companies that have been violently sold off in the recent period have also attracted inflows of funds.

Futu News compiled a list of the 'Rebound King' in the past four days, showing that global power chip giant $Monolithic Power Systems (MPWR.US)$ , one of the chip giants $Broadcom (AVGO.US)$ , and the data center chip giant $Marvell Technology (MRVL.US)$ all rebounded by more than 14%;

the three big American chip manufacturing equipment suppliers $KLA Corp (KLAC.US)$Please use your Futubull account to access the feature.$Applied Materials (AMAT.US)$Please use your Futubull account to access the feature.$Lam Research (LRCX.US)$ and the storage chip giant $Micron Technology (MU.US)$ all rose more than 12%;

the semiconductor testing equipment leader $Teradyne (TER.US)$ and the global wafer factory $Taiwan Semiconductor (TSM.US)$ also made the list, with cumulative gains exceeding 11%.

Can market optimism continue?

For most of this year, technology stocks have led the stock market bull run, propelled by enthusiasm for artificial intelligence (AI). However, a number of factors, including concerns about overvaluation, worries about whether huge AI investments will generate the expected return, and the Federal Reserve's reluctance to cut interest rates, have led to a violent sell-off of tech stocks in the recent past.

However, according to Bloomberg data, investors have reinvested a large amount of funds into large stocks, with net inflows of $0.21 billion into the on Monday, the largest single-day fund inflow in the fund's nearly 20-year history. $Rydex Exchange Traded Fd Trust Guggenheim S&P 500 Top 50 Etf (XLG.US)$ XLG tracks the 50 largest companies in the S&P 500 index. Investors' enthusiasm for XLG highlights their strong confidence in large-cap growth stocks dominated by technology stocks.

XLG tracks the 50 largest companies in the S&P 500 index. Investors' pursuit of XLG highlights their strong confidence in large-cap growth stocks, especially those in the technology sector.

In addition, yesterday's article"Since the low point of Black Monday, Nvidia has rebounded by 20%! Can it start a new round of rise with support from multiple big banks?"It has also been written that many Wall Street banks, including Bank of America and UBS, are still bullish on Nvidia and have expressed that the recent decline in the semiconductor industry has been overdone. Bank of America analyst Vivek Arya stated that Nvidia is one of the bank's most favored "rebound" choices.

Some analysts also pointed out that there are many positive news related to Nvidia and super-sized companies this earnings season. From the earnings reports of large tech companies this quarter, some of Nvidia's biggest customers - Microsoft, Amazon, Alphabet and Meta - have all expressed plans to continue investing in AI infrastructure.

In addition, the previous article"After the sharp drop in US stocks, are the seven giants still overvalued?"It has also been written that this sell-off has brought Nvidia's valuation down to a level that may be more attractive to investors.

Currently, Nvidia's dynamic P/E ratio is about 30 times, much lower than the approximately 44 times in June. In comparison, the forward P/E ratio of the Nasdaq 100 index is 25 times. Therefore, some market participants have pointed out that even if there is expected competition in the future, Nvidia's current valuation does not look expensive.

In fact, the recent sharp market decline has already attracted a large number of investors who plan to buy on the dips.

From hedge funds to individual investors, many industry insiders still generally bullish on the long-term development trajectory of AI and are trying to build positions before Nvidia's earnings report is released after the US stock market on August 28.

Ivana Delevska, founder and chief investment officer of Spear Invest, said that the technical pressure has now weakened and the fundamental narrative has returned, which is why we are seeing Nvidia soaring.

However, it is worth noting that Goldman Sachs warns that Nvidia's upcoming earnings report may have a significant impact on the entire AI market. If Nvidia's earnings report exceeds expectations, it may boost the market's sentiment; if it is lower than expected, it may aggravate market uncertainty.

In addition, investors also need to pay attention to tonight's CPI data, which will be one of the key indicators that dominate market sentiment.

Editor/Somer