B) Overreaction.
Agree with Jensen Huang that AI is more like an efficiency layer than a full replacement. Just like we didn’t rebuild Excel from scratch when new technology appeared, AI will be added into existing tools to make them faster and easier to use. The software that will survive are the ones people already depend on every day, such as spreadsheets, design tools, and business systems, because they are deeply built into how work gets done. Weaker or nice-to-have apps may disappear, since AI can easily copy what they do. In the end, AI doesn’t replace everything, it strengthens the most important software and quietly pushes out the rest.
Is Market Rebound a Dead-Cat Bounce or Real Turn?
After last week’s AI-led selloff, US equities staged a $1 trillion rebound, with the S&P 500 posting its best single-day gain since May. Yet confidence remains thin. Implied volatility is still elevated, trading volume ran ~13% below average, and Goldman’s short-bias basket jumped ~9%, hinting the rally was driven by short covering rather than fresh conviction.
Investors are struggling to price a murky US outlook while reassessing AI’s winner-takes-all impact, especially on software.
Is the rebound a dead cat bounce?
Would you add stocks now?
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