Weekly Market Commentary 5-4-2026

“AI Wave Continues to Power Technology Earnings Boom?”
See what we have to say about the following:

 

 

 

• AI Wave Continues to Power Technology Earnings Boom – Technology sector earnings are being driven by AI-led strength at mega-cap hyperscalers, with results exceeding expectations and positioning tech to generate the majority of S&P 500 earnings growth.

 

• AI Capex Cycle Picking Up Speed – Capital spending by leading hyperscalers on AI infrastructure continues to accelerate, with investment projected to exceed $700 billion in 2026, reinforcing confidence in sustained technology growth.

 

• Margin Expansion and Earnings Growth Gap – Technology companies maintain a significant profit margin and earnings growth advantage over the rest of the S&P 500, supported by early-stage AI adoption and ongoing productivity gains.

 

• STAAC Asset Allocation Commentary – STAAC has shifted to a tactical overweight in equities and underweight in fixed income, favoring large-cap growth, particularly technology and industrials, while maintaining a cautious stance on rate-sensitive fixed income.