SPX: Makes equities affordable again

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SPX: Makes equities affordable againS&P 500SP:SPXXBTFXThe previous week was quite an interesting one on equity markets. A lot of swing movements, but the general trend was toward the downside, or a general correction. The weekly peak of the S&P 500 was at the level of 6.870, but the next two days were traded with a huge market correction. Futures on Friday were traded with a significant discount, when the market opened at 6.648. The dip buyers immediately stepped on the market, and managed to push the index toward the higher grounds, where the index closed the week at 6.734. Many analysts are questioning whether this Friday's move was pointing to the reverse of investors sentiment, or was it just a short term correction to the upside? The week started with an interesting news that the SoftBank Group has sold its entire stake in Nvidia Corporation for around $5,8B, with aim to transfer these funds in AI investments, including OpenAI. Amazon shares jumped after it struck a $38 billion deal with OpenAI to provide AWS capacity, signalling strong demand for AI infrastructure. Apple reported strong earnings, with its services business growing significantly, helping it stay resilient even amid broader market worries. Based on the previous week's market movements, it could be noted that broad-based profit-taking hit big tech as investors expressed renewed valuation concerns on AI-focused companies, with Nvidia, Microsoft, AMD, and others seeing notable declines. Meanwhile, analysts are closely watching capital-expenditure plans from major companies as these will test whether the current AI-driven rally is sustainable.