Q3 US corporate earnings continue to report strong, with S&P 500 profits on track for 12% year-on-year growth and widespread beats on sales and margins. 
However, despite robust fundamentals, stocks reacting to positive reports have underperformed historically, weighed down by already-bullish investor positioning. An inverted put-call skew in the “Magnificent 7” suggests elevated optimism, often followed by short-term pullbacks. 
Meanwhile, fears of AI-fuelled overinvestment in tech appear overstated: while capital expenditure is rising, it remains modest as a share of revenue, free cash flow, and GDP. 
Looking at China, policy direction after the Fourth Plenum supports continued advancement in AI, semiconductors, and robotics, while the recent Xi-Trump meeting offers temporary relief on trade tensions. Though near-term consolidation is possible, structural drivers keep China tech and equities attractive for diversified portfolios.