The S&P 500 is close to its all-time highs, yet market conditions suggest a likely pullback soon due to worsening liquidity and narrow tech-led gains. A rotation from tech and AI sectors into reflationary sectors is expected, similar to patterns seen in mid-2023. Despite a potential short-term correction, strong fundamentals in AI—such as tight semiconductor supply and growing enterprise adoption—indicate the AI rally is sustainable and presents a generational investment opportunity. The S&P 500 may first hit new highs before pulling back to provide attractive entry points in AI-related stocks.
The VanEck Semiconductor ETF (SMH) is currently trading at USD 634.46, showing a 1-day gain of 2.70% on Pluang. This aligns with the article's mention of strong fundamentals in the semiconductor sector supporting the AI rally. Data is as of Oct 02, 2026 23:22 WIB.
