Earlier this week, we received both CPI and PPI data, pointing to an economy still dealing with inflationary pressures. CPI came in slightly above expectations in April, while PPI surprised more meaningfully to the upside. Investors should closely monitor how these trends flow into PCE inflation data. Given the differences in how CPI and PCE weight certain categories, particularly software-related services, the AI boom could lead to a larger-than-normal divergence between the two inflation measures. Overall, this will be an important signal to watch going forward, as markets remain highly sensitive to inflation news.

Highlights from the week of May 1 – May 7, 2026.

U.S. stocks had a strong week, led by technology.

U.S. stocks had a strong week, led by technology.

Recent economic releases point to slowing momentum in U.S. growth. This week’s ISM survey data shows that while activity remains in expansion territory, demand indicators have softened, reflecting more cautious business conditions. Ongoing uncertainty tied to geopolitical conflict and trade policy continues to weigh on confidence, while the lagged impact of earlier monetary tightening is still restraining investment and hiring. These headwinds point to softer growth dynamics, even if outright contraction is avoided. Here’s what’s in the numbers, and where they might hit your portfolio.

Jim Lydotes flips the timer on 1) small cap capex, 2) Voya’s Grassroots Research® on cyber spending, 3) an interesting setup for specialty chemicals.

Stocks edged higher during the week, with value and international stocks leading the way. Oil crossed $100, short-term U.S. Treasury yields climbed, U.S. gross domestic product rebounded, jobs stayed strong, and earnings continued to beat expectations.

This week represents one of the largest concentrations of earnings in the 1Q26 reporting season.

Having trouble remembering the difference between a CDR and a CRT? We’re here to help.

Stocks hit record highs despite historic consumer pessimism, oil surged on Middle East tensions, and inflation fears climbed.