Nasdaq 100 Erases a Full Correction in One Day on Microsoft's Cloud Results

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