Tech rebound and sector rotation lift global markets after recent selloff

Global equity markets are stabilizing and turning higher today after a sharp three-day selloff in technology shares, with investors rotating across sectors rather than exiting stocks altogether. U.S. equity futures are modestly positive, pointing to a rebound led not only by large technology names but also by smaller companies, as indicated by the Russell 2000 outperforming with gains of more than 1%. This broadening of the rally suggests that investors are reallocating within equities instead of moving to cash or bonds, which supports overall market resilience. The recent volatility was triggered by profit-taking in mega-cap technology stocks following a series of massive capital expenditure (capex) announcements from giants such as Alphabet and Amazon. These commitments signal a long-term investment cycle in areas like cloud infrastructure and AI, which is reshaping sector dynamics. While software names bore the brunt of the selloff, chipmakers such as NVIDIA and AMD have benefited from expectations that they will be key suppliers to this new capex wave. The resulting sector rotation is driving a more balanced market, with leadership expanding beyond a narrow group of mega-cap tech names. At the same time, the Dow Jones Industrial Average reaching the 50,000 level for the first time underscores the underlying strength of the broader U.S. market despite the recent tech-driven pullback. Bond markets are sending mixed but generally supportive signals: short-term yields fell sharply yesterday, then ticked slightly higher this morning, remaining below 3.50%. This suggests that interest-rate expectations are not tightening aggressively, helping to underpin equity valuations. Overall, the combination of a recovering tech sector, historic index milestones, and a broadening rally across market caps is likely to drive a cautiously bullish tone in global stock markets today, even as investors remain attentive to ongoing sector rotations and rate dynamics.