What to Watch With Debt Costs Related to A.I. Spend

• A 'position cleansing event' in tech and semiconductors last week suggests a bottom in the AI tech trade.
• Hyperscaler earnings indicate a path forward for continued AI spending, with Microsoft and Amazon showing strong revenue growth and expanding margins.
• Geopolitical conflicts are viewed as a 'hot peace' scenario, with investors showing fatigue, and the global economy proving resilient to oil price floors.

Zachary Hill discusses the tech and semiconductor market, suggesting a bottom was reached in the AI tech trade last week. He anticipates a path higher for these sectors, albeit with some bumps due to market positioning and August's typical low liquidity. Investors should focus on companies demonstrating revenue growth from AI capital expenditure and expanding margins.