Market bounce back has to do with spending hyperscalers are planning: Yardeni Research's Ed Yardeni

Yardeni observes that "Happy days are here again" and investors are buying everything, specifically highlighting Gold and Bitcoin alongside stocks. The combination of massive corporate spending (stimulus) and large government tax refund checks is creating a liquidity-rich environment. This money is flowing into alternative assets, driving prices up across the board. Both asset classes are performing "extremely well" in the current environment. Not explicitly mentioned, but generally tied to liquidity drying up or a shift in economic sentiment.

While the tech giants fight, the rest of the market (the "Impressive 493" and the Dow Jones Industrial Average) is performing extraordinarily well. The $650 billion being spent by the hyperscalers flows directly into the revenues of other companies. Building data centers requires 500 to 1,000 different vendors—including steel, concrete, wiring, and power. This acts as a massive economic stimulus, boosting GDP to ~5% and lifting the earnings of industrial and broader market companies. The Dow Jones is hitting record highs, and the economy has remained resilient despite high interest rates and inflation. A potential realization that the AI capital spending will not be profitable could eventually hurt the broader sentiment.