Yes, but I would separate bounce from durable recovery.
A dovish Federal Reserve signal would likely trigger an immediate relief rally in rate-sensitive tech, especially long-duration names like NVIDIA, Tesla and software multiples. Lower discount-rate expectations mechanically support valuations.
The catch is supply-side inflation. If price pressures are being driven by energy, tariffs, labour tightness, or supply bottlenecks, the Federal Reserve has limited room to ease aggressively. That caps how far valuation expansion can run.
What matters most is Powell’s tone:
• Dovish pivot → sharp short squeeze / risk-on rally
• Data-dependent neutral → brief bounce, fade risk
• Sticky inflation concern → semis and high-PE AI names may see another leg lower
My base case: tradable rebound, not full reset to new highs yet, unless earnings re-accelerate and AI capex starts showing clearer ROI.
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.
- Adz5150·05-01I’m with you on that. Relief rallies are easy and durable, upside probably needs softer inflation, resilient labour data, and earnings to keep confirming.LikeReport