In August 2026, U.S. equities entered a choppy recovery phase after the sharp correction in July. The market showed a pattern of a rapid sell-off followed by gradual repair. Capital did not fully return to the single technology-led theme seen before the correction. Instead, flows rotated among AI-related assets, software, cybersecurity, and selected non-technology or defensive areas. Market breadth improved, but internal dispersion remained clear, indicating that investors were still searching for a more stable direction. From a macro perspective, higher oil prices, sticky inflation and rising Treasury yields continued to constrain valuations for growth stocks. A hawkish policy tone also made the rebound more cautious. We believe AI remains the most important medium- to long-term theme within U.S. technology assets. However, market pricing is shifting from a pure growth narrative toward earnings delivery, capital efficiency and valuation resilience. For quantitative strategies, this type of environment, where the long-term trend remains intact but volatility and dispersion persist, can create better conditions for identifying market rhythm and structural opportunities.

Risk disclosure: Market fluctuations may cause investment outcomes to vary. Investors should make rational decisions based on their own risk tolerance. This article is for general information only and does not constitute investment advice, an offer, or a solicitation. Past performance is not indicative of future results.