Weekly Market Commentary 09-21-2026

"Markets Often Shrug Off Hikes"

See what we have to say about the following:

 

 

 

 

·        Margins Are Mean-Reverting. Right?
S&P 500 margins likely have a higher long-term baseline, but current levels still appear elevated and vulnerable to normalization.

·        Technology Sector Mix
Technology’s growing share of the S&P 500 has structurally boosted profit margins, though AI-related spending may increase future cyclicality.

·        Three Sources Driving Excess Margins
Elevated margins are being driven by structural changes, AI-related cyclical benefits, delayed expense recognition, and inflation-driven pricing power.

·        STAAC Commentary
STAAC remains overweight equities and favors quality, industrials, and energy sectors due to a strengthening economy and continued AI-driven growth.