After months of struggle, U.S. small cap stocks have staged a remarkable turnaround in July, rising 9% so far this month. U.S. large cap stocks, meanwhile, are roughly flat on the month.

The Bureau of Economic Analysis announced today that seasonally adjusted U.S. real GDP grew at a 2.8% annual rate in the first quarter.

Some investors think that the so-called bubble in AI/semiconductor stocks is in the process of popping but this segment of the market should rebound and reach new heights in the months ahead.