Cracks in the AI Trade, a Strong Jobs Print, and the Summer Fed Watch

This week’s conversation points to an economy that is still expanding, but with a market narrative that may be shifting. Manufacturing and services remained in expansion, job openings improved, and May payrolls came in stronger than expected, reinforcing a firmer labor backdrop ahead of the June FOMC meeting. At the same time, the team discusses early cracks in the AI trade, the potential for rotation as large IPOs approach, and why higher yields may persist. In fixed income, resilient credit markets still favor quality, while policy and inflation remain central watchpoints for portfolio positioning. Continue the conversation at our upcoming Key Wealth National Call: 2026 Mid-Year CIO Update on June 9, 2026 at 1:00 PM ET. Speakers:Brian Pietrangelo, Managing Director of Investment StrategyRajeev Sharma, Head of Fixed IncomeStephen Hoedt, Head of Equities 01:39 — Manufacturing, services, Beige Book, JOLTS, and May payrolls.05:16 — Middle East developments, oil inventories, and summer supply risks.08:10 — AI trade cracks, Broadcom, and the coming SpaceX IPO.16:54 — Jobs, Fed expectations, higher yields, and resilient credit.23:07 — National Call reminder and what investors should watch next. Additional ResourcesRegister Now: Key Wealth National Call: 2026 Mid-Year CIO UpdateRead: Key Questions: What’s Behind the Back Up in Global Bond Yields? Key QuestionsWeekly Investment BriefSubscribe to our Key Wealth Insights newsletterFollow us on LinkedIn