All three major indexes moved higher in lockstep. The Nasdaq gained 2.78% to 25,122.18. The S&P 500 rose 1.66% to 7,437.63, and the Dow climbed 1.19% to 52,208.06. The previous day's sharp drop was reversed in a single session, with the Nasdaq snapping a six-day losing streak (CNBC). The trigger was Microsoft (MSFT), as Azure's revenue growth rate accelerated to 43% (Yahoo Finance). The market read it as evidence that AI investments are finally translating into real profits. The fact that the company did not raise its capital expenditure (capex) plans further provided relief (Reuters). On the macro side, however, the picture was the opposite. Q2 GDP (gross domestic product) growth came in at 1.5%, missing the 2.1% forecast (WSJ). The VIX (volatility index) fell 17.57% to 17.03. The Fear & Greed Index (investor-sentiment thermometer) sits at 39, still in "Fear" territory.

Money rotated out of defensive stocks (sectors with steady earnings regardless of the economy) and piled into technology names. The rotation flipped direction in a single day. Five of the eleven sectors actually closed lower. Consumer staples fell 2.16%.

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> "I certainly don't think the AI story is over. But there is clearly room for potholes along the way."

> — Sanjeev Tumkur, Head of Equity Research, Rathbones

> "A strategy of less forward guidance is about putting the onus on the market. You're drawing the market in to do your work for you."

> — Tom Urano, Co-CIO, Sage Advisory

> "If investors come to that conclusion, it would put the Fed's inflation-fighting credibility increasingly to the test. Arguably, it's already happening."

> — Seema Shah, Chief Global Strategist, Principal Asset Management

Technical signals came in dead even — 120 bullish versus 120 bearish. Even with the index's strong gain, the picture at the stock level was mixed. Microsoft (MSFT) appeared on both the RSI overbought (a signal that a stock has risen too fast) and upper Bollinger Band breakout lists. Meanwhile, Meta (META) and Nvidia (NVDA) registered as oversold, leaving room for a rebound (View Technical Signals Report). Today was a "tech-only rally" day. Tomorrow, watch whether other sectors — beyond chips — join the move.