Tech Stocks Dip as AI Doubts Linger on Wall Street

• Market is experiencing dissonance, with fears of AI trade concerns leading to lower bond yields, while also seeking global reflation in small caps and international markets.
• AI's impact on software is complex; some software companies are partnering with AI model makers, while others face disruption.
• International markets are benefiting from a shift in optimism from AI-centric US tech, driven by policy/fiscal tailwinds in regions like Japan, Latin America, and Europe (defense spending).
• Earnings are broadening out, with Russell 3000 median earnings growth at 11%, and large-cap quality adopters in the US should not be abandoned.
• The market is taking a pause on 'Mag 7' and S&P due to massive spending ramp-up and the emergence of alternative markets with momentum.

Dan Skelly discusses the current market dissonance, where investors are risk-off due to AI trade concerns, yet also seeking global reflation. He highlights the impact of AI on software, the broadening of earnings beyond mega-cap tech, and the increasing appeal of international markets due to policy tailwinds and fundamental catalysts, suggesting a rotation away from concentrated US tech. He advises not to abandon quality large-cap US adopters.