Wall St rebounds after week-long tech rout, Amazon down on AI capex jump

You’re watching a strange push-pull dynamic right now.

On one hand, markets are trying to stabilize after a brutal tech selloff. Futures and indices are attempting a bounce.

On the other, the reason behind the selloff hasn’t gone away.

Big Tech is ramping AI infrastructure spending at an aggressive pace. Capex is exploding faster than near-term revenue realization.

That’s starting to create tension:

• Growth narrative = bullish

• Margin compression = bearish

• Cash flow timing = uncertain

We’ve seen this before in different cycles, when markets price the future too early, volatility fills the gap.

So the question becomes:

Is AI capex the foundation of the next decade’s earnings or the trigger for a near-term valuation reset?

Curious where everyone stands, are you buying this dip or waiting for spending to peak?