Why that $2 trillion software stock wipeout didn’t derail the AI bull market

S&P 500 futures were up 0.18% this morning before the opening bell in New York after the index closed up 0.47% yesterday, leaving it just a tick below its all-time high. Traders bought up stocks after most companies in the S&P reported that they had beaten consensus earnings estimates so far.

The contrast between this week’s bullish rally and last week’s AI-induced sell-off could not be more stark. To put it in perspective, $2 trillion was wiped off the market cap of software companies last week...