Stock market rebounds strongly despite Middle East tensions, driven by AI optimism and tech sector shifts.

Despite ongoing geopolitical risks from the Iran conflict and potential Strait of Hormuz disruptions, the stock market has shown remarkable resilience, largely fueled by enthusiasm for AI advancements. After an initial correction, markets bounced back sharply, reminiscent of the 2020 COVID recovery. Investors are now weighing whether recent gains, especially in semiconductor stocks like Intel, might be due for a correction, while undervalued tech giants like Microsoft present potential buying opportunities. The outlook remains uncertain with possible Federal Reserve rate hikes on the horizon, but focusing on relative value in tech stocks could be a prudent strategy.