Despite a stellar overnight performance in US stocks—the Dow Jones hit a record high and the Nasdaq surged 2% driven by tech stocks—the underlying market sentiment revealed a significant divergence: a "superficial euphoria masking underlying defensiveness."
According to a recent market report by Benzinga, the core driver of this rally was strong bargain hunting in previously oversold tech giants, coupled with declining oil prices suppressing inflation fears. However, the CNN Fear & Greed Index remained in the "neutral" or even slightly "fear" range, indicating that market participants were not blindly euphoric.
Morgan Stanley strategists warned that the high yields on long-term US Treasury bonds have not yet lifted the physical pressure on overvalued stocks; Bernstein analyst Douglas Harned also pointed out that investors remain highly cautious about the returns on tech giants' massive AI capital expenditures.
