In his May 2026 market update, JP explores the dynamics behind the U.S. stock market’s recent strength. He explains how technology, semiconductor and AI-related infrastructure stocks have once again taken a leadership role in markets, benefiting investors with selective exposure to these areas. Capital expenditures in this space have boosted markets, even as consumers have become more cautious due to rising inflation fueled by higher energy prices.  

This inflationary pressure poses a challenge to the Federal Reserve—JP notes how we went from expectations for rate cuts at year-end to a scenario now where rate hikes may be on the table. As a result, bond investors are enjoying higher yields, but falling prices.

The dynamic between AI momentum, energy and inflation challenges and higher interest rates creates a complex environment for investors to navigate—we’re here to help.