I'm Jessica Edinger, CNBC. The rally continues this afternoon on Wall Street after yesterday's stock selloff led by Microsoft shares and chip makers. The Dow popped back up.It had faded a bit with its rally, but it is back up 366 points. That's 7/10en of a percent. Microsoft shares now up almost 16% after strong quarterly results.The S&P 500 index up 90, that's 1 and a4%. The Nasdaq up 605 points, almost 2.5%. The Nasdaq's now in the green for the week.Chipmaker shares are mostly higher and boy are they soa ...

Monetary Policy & Federal Reserve - Financial markets are experiencing a loss of confidence in Federal Reserve Chair Kevin Walsh, with long-term yields pushing to their highest levels in over 2 decades [1] - The 30-year Treasury yield closed at its highest level since 2007 at 5.20% [9] - Federal Reserve Chair Kevin Walsh is implementing a new economic reaction function aided by top academic brains like Karen Dinan from Harvard to evaluate supply versus demand shocks [7][8] - The Federal Reserve maintains its commitment to bringing inflation back down to the 2% target [26] Economic Indicators & Inflation - The latest Personal Consumption Expenditures (PCE) data showed a top-line decrease of negative growth with core inflation dropping significantly, following previous Consumer Price Index (CPI) trends [4] - Gross Domestic Product (GDP) final sales increased by almost 4%, specifically registering a 3.9% signal driven by consumption and investment booms despite offsetting capital import and oil inventory revaluation factors [11][12] - Energy and food price pressures are easing through deregulation and agricultural management, with egg prices reaching an all-time low due to successful avian flu handling [24][25] Market Trends & Technology Sector - Artificial Intelligence (AI) sector valuations are considered rational compared to the 1990s dot-com bubble because current AI companies are generating billions of dollars in real revenues and actual productivity growth [29][31] - Historical tech bubbles involved high valuations for firms without earnings, such as early pet-delivery companies, whereas modern AI providers charge customers billions for active services [29][30][31]