The Closer – AI Bull Back on Top, GDP, PCE – 5/28/26

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  • Even after working off of its lows, the S&P 500 Software and Services industry’s distance from its price targets is in the 10th percentile of all periods since 2003.
  • GDP was revised down 0.4%-pt QoQ SAAR as non-residential investment remained the biggest driver of growth.
  • Due to a combination of weak hiring, slowing wage growth, and higher inflation, purchasing power has been driven down as real household earnings registered a 4th percentile reading.

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The Closer – Overbought Without Breath, Regional Prices Rise, AI – 5/27/26

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  • The S&P 500 has been overbought for 31 days in a row, but the 10-day A/D line hasn’t experienced an overbought reading since April 21st.
  • Regional manufacturing surveys had the strongest showing for price indices since the spring of 2022.
  • Special questions from regional Federal Reserve bank surveys indicated rising prices and decelerating AI adoption among responding firms.

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The Closer – Memory & Tokens, AI Chart Check – 5/26/26

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  • DRAM prices and GPU rental rates have continued to rise, powering the AI trade.
  • AI related stocks have posted consistent gains recently with many of those names reaching new highs.
  • Separate surveys tracking consumer confidence are showing drastically different results including a record low for UMich and more tempered readings for the Conference Board.

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