U.S. stocks rebounded (SPX +0.4%, NDX +0.8%) on strong $Microsoft(MSFT.US) cloud growth, reassuring investors that AI investments are paying off and no further escalation in hyper scaler Capex, outweighing inflation worries and a jump in 30-year treasury yields after the Fed held rates steady. $Meta Platforms(META.US) fell pre-market on lighter 3Q rev guidance. Investor focus remains on potential overspend on AI Capex and likely returns; S&P 500 FY’2026 EPS estimates +25% YoY to $346, equating to a 21.1x forward P/E (4.7% earnings yield) in line with 10-year treasury yields. Escalation in U.S.-Iran conflict continues. Caution advised on $Tesla(TSLA.US) due to declining long-term earnings estimates, likely commoditization of autonomous ride-hailing, and a stretched valuation.