July 2026: Strong Rebound in US Tech Stocks – Why Are Investors Still Buying?

On July 26, 2026, the US stock market saw a new round of gains. The Nasdaq Composite Index broke through the 21,000-point mark intraday, driven by better-than-expected earnings from tech giants and the continued heat of the AI sector, hitting a record high. The S&P 500 Index and the Dow Jones Industrial Average also rose in tandem, with market sentiment significantly warming. This rebound not only validated the resilience of the US stock market but also provided global investors, especially those in Southeast Asia, an opportunity to reevaluate their US stock allocations.

Tech Stocks Lead the Rebound: AI and Cloud Computing as Core Drivers

This week, several US tech giants released impressive quarterly earnings. Leading companies such as Apple, Microsoft, and Nvidia all exceeded market expectations in revenue and profits. Nvidia's AI chip business grew over 80% year-over-year, with data center revenue hitting a record; Microsoft's cloud platform Azure saw its growth rate return to above 30% and announced deep integration of its AI assistant Copilot into Office suites. These news quickly boosted investor confidence, with funds accelerating into the tech sector.

Meanwhile, US Treasury yields fell against the backdrop of the Fed signaling it would keep interest rates steady, further reducing valuation pressure on high-growth stocks. Market analysts pointed out that despite earlier volatility triggered by the Fed's hawkish dot plot, the strong growth in corporate earnings is offsetting uncertainty in the interest rate environment.

Southeast Asian Investors Accelerate Allocation: US Stock ETF Inflows Surge

In Southeast Asian countries such as Thailand and Singapore, the proportion of US stocks in portfolios of individual and institutional investors continues to rise. According to Asian exchange data, in the second quarter of 2026, investments in US stocks via channels like QDII and Stock Connect from Southeast Asian countries grew 35% quarter-over-quarter. Among them, ETFs tracking the Nasdaq 100 Index were the most popular, followed by S&P 500 ETFs and tech-themed funds.

Chana Sirivat, a seasoned investor from Thailand, said: "Despite global uncertainties, the transparency, liquidity, and quality of companies in the US market are hard to replace. Especially tech giants, with their globally leading technological moats and profitability, remain the best assets in the long run." Thailand's securities regulator also recently eased the threshold for local investors to trade US stocks, with several brokers offering commission-free US stock trading services, further stimulating market demand.

Six Core Advantages of Investing in US Stocks

Combined with current market performance, let's systematically review the key advantages of investing in US stocks, helping Southeast Asian investors understand why US stocks remain worth long-term allocation.

1. Market Maturity and Liquidity

The US stock market is the largest and most mature capital market globally, with a total market cap exceeding $40 trillion. High liquidity means investors can easily buy and sell stocks at very low transaction costs. Even during extreme market conditions, the US stock market maintains relatively stable pricing, which is hard to replicate in emerging markets.

2. Quality Company Resources

The US stock market brings together the world's best companies, especially in tech, healthcare, and consumer sectors. Companies like Apple, Microsoft, Amazon, Google, and Nvidia not only have massive market caps but also possess strong brand moats and continuous innovation capabilities. For example, Apple's ecosystem stickiness and Nvidia's monopoly in AI chips are hard for other markets to match.

3. Rich Investment Tools

Besides individual stocks, the US market offers a wide variety of ETFs, options, REITs, and other derivatives. Investors can invest in an entire industry or market through a single ETF, such as SPY (S&P 500 ETF) or QQQ (Nasdaq 100 ETF), and can also use options for hedging or leverage. This flexibility allows for more precise asset allocation.

4. Strict Regulation and Information Disclosure

The US Securities and Exchange Commission (SEC) requires extremely high financial transparency from listed companies. Regular reports and material event disclosures are timely, and false statements face severe penalties. This significantly reduces information asymmetry risks and protects the interests of small and medium investors.

5. Tax Benefits and Planning

For non-US residents, US stock trading is not subject to capital gains tax (except for short-term holdings), with only a 10-30% withholding tax on dividends (depending on country treaties). Some countries can further reduce tax rates through tax treaties. Additionally, holding US stocks in retirement accounts (like IRAs) allows tax deferral, maximizing long-term compounding effects.

6. Anchor for Global Asset Allocation

When Southeast Asian local currencies depreciate or political uncertainty arises, holding US dollar-denominated US stocks can hedge against exchange rate risks. US stocks have a low correlation with Southeast Asian stock markets, effectively diversifying portfolio volatility. In the long run, the US dollar remains the world's primary reserve currency, and US stock assets have natural inflation-resistant properties.

Risks and Considerations: Rational View of Market Volatility

Despite the clear advantages, investors should also be wary of downside risks in US stocks. In the first half of 2026, factors such as the Fed's pause on rate cuts and recurring geopolitical conflicts led to increased market volatility. Tech stock valuations are at historical highs, and if earnings disappoint, significant pullbacks could occur. Additionally, exchange rate fluctuations may erode returns, especially when currencies like the Thai Baht strengthen against the US dollar.

In response, Li Ming, a strategy analyst at DBS Bank Singapore, said: "We recommend Southeast Asian investors adopt a dollar-cost averaging approach to build positions, prioritize broad-based index ETFs, and keep US stocks within 30% of total assets. Avoid chasing gains and panic selling; focus on long-term fundamentals and valuation reasonableness."

Future Outlook: AI Revolution and Global Capital Flows

Looking to the second half of the year, the market generally believes that AI and cloud computing will continue to drive profit growth for tech stocks. If the Fed starts a rate-cutting cycle in September, it will further boost growth stock valuations. Meanwhile, signs of global capital shifting from emerging markets back to US stocks have already emerged, providing sustained capital support for US stocks.

For Thai investors, the current US stock market is in an adjustment phase within a technical bull market, perhaps a good time to allocate quality assets. Through local Thai brokers or international platforms, Thai residents can easily open accounts and trade US stocks, with minimum thresholds as low as $1. With the improvement of localized services, US stock investment will become more popular.

In summary, with its unparalleled maturity, quality corporate ecosystem, and rich tools, the US stock market remains an allocation option that global investors cannot ignore. Maintaining discipline amid volatility and embracing technological innovation is the way to share in long-term growth dividends.