Nasdaq 100 Erases a Full Correction in One Day, Surging 3.4% on Microsoft's Cloud Results

On July 29, 2026, the Nasdaq 100 closed in correction territory — down roughly 10% from recent highs. One session later, it surged 3.4%, its best day since March 31, 2026, per Bloomberg. The catalyst: Microsoft's cloud growth results revived investor optimism around AI spending. When one earnings report can reverse an index-wide correction, positioning is crowded and sentiment is fragile. The reverse cuts equally fast.