Jordi Visser: Short-Term AI Fear, Long-Term Compute Scarcity

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In this week's video, I review a quiet summer week with the S&P down 61 bps, the Qs off 1.5%, and IWM posting a fourth straight sub-1% move. Falling volatility, better small-cap and equal-weight performance, and improving breadth point to earnings strength. With nearly a third reported, 86% have beaten estimates against a 10-year average of 76%, an 8-to-1 beat-to-miss ratio, and margins grinding higher (~14.4% ex-Google). Estimate revisions show the market is fine.

The big signal came from China, where Beijing unleashed broad support to halt the tech sell-off—state funds buying nearly $9B, insurers adding equity, and listing standards changing—because capital markets are vital to its AI ambitions. This is a...