Tech-led rally after the July correction, with entries still too extended
Credit and policy remain supportive while Hormuz is the main leftover inflation risk
Credit conditions and monetary policy are in a good place with no sign of turning, which keeps the backdrop constructive for equities. Crude has eased to 83 dollars from the July peak near 100, so oil-driven inflation pressure is fading but not gone. A Strait of Hormuz disruption would lift oil and then inflation. No new position is warranted yet.
Technology is leading again, but most momentum setups are too extended to buy
The S&P 500 rose 3.6 percent and the Nasdaq 5 percent on the week. After the July correction, future technologies are pulling the index higher again, including AI, robotics, and quantum computing. Cybersecurity, semiconductors, software, and biotech also closed strong. Relative-strength names are stretched, and there is no clean new momentum breakout worth entering.
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