Global tech stocks surge, AI optimism roars back

Global tech stocks surged after soft US PPI, but have since pulled back for three straight sessions, with memory stocks reversing sharply. European stocks hit record highs but closed weak on oil/geopolitics and an Anthropic revenue miss ($65B run rate below expectations). ECB warns AI valuations may correct, citing historical boom-bust patterns and €440B in euro area household exposure to US tech. Market breadth is broadening: equal-weight S&P 500 outperforming cap-weighted, mid-caps strong. UBS and Goldman Sachs push diversification into Europe and Japan as AI concentration risks grow. The S&P 500 is near record highs but pulled back on weak consumer sentiment and retail sales. AI optimism continues, but diversification beyond Mag 7 remains recommended.