Earlier this year it felt like sentiment was extremely negative everywhere. People were talking recession, sticky inflation, rate cuts not happening, overvalued tech, AI bubble, consumer weakness, etc. A lot of people sounded convinced the market was headed lower.
Now fast forward a few months and sentiment feels completely different. Stocks are ripping again, people seem bullish on AI/growth, and fear kinda disappeared.
What changed?
Why was the market so bearish earlier this year, but now suddenly bullish again?
byu/savingrace0262 instocks
Posted by savingrace0262
9 Comments
Tutes knew about the operation in Iran.
Some combination of the big 3
1: AI
2: oil
3: war
There was a war.
And then it seemed like the war was about to end and that the war didn’t impact on the AI trade.
Companies related to AI started either showing profits (hardware) or significant growth (AI models, hyper scalers).
Other stocks not related to the above haven’t done as well
“People” don’t know sh!t
It is interesting that the market has held up so well given the Iran war/conflict. The Iran war/conflict started February 28. The market hit the 2026 low on March 30th. I’m amazed and pleased the market has done as well as it has. I’m skeptical on how long it will last given the economic repercussions of the Iran situation.
not sure anything changed except price. my small ai basket was down 14% in april and +9% six weeks later, and the exact same people who called sticky inflation/ai bubble were suddenly explaining why hardware earnings and hyperscaler capex made it obvious.
Puppet masters decided you should be scared, then decided you should be optimistic.
Nothing like price to change sentiment.
Earnings.