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US mega-cap tech has broken out of a five-month downtrend.
Blowout Q1 earnings, better relative valuations, and still-light positioning are fueling momentum. With sentiment cautious and room to add, the setup suggests this rally may have legs—despite nagging skepticism.
With macro data improving from low levels, volatility resetting, and banks surging, sentiment is shifting. Domestic investors are buying again, and equity inflows are at decade highs. Markets may be overbought—but momentum is back in play.