Despite strong stock market gains and headline job growth, the U.S. labor market shows signs of weakening quality with full-time employment dropping to 82.6%, the lowest since the pandemic recovery. Part-time jobs are rising, and more workers are involuntarily in part-time roles, which could weaken consumer spending over time. This shift coincides with heavy corporate investment in AI and automation, which boosts profits but slows hiring in high-paying full-time roles. While not signaling an immediate recession, the trend suggests investors should watch labor quality closely as it impacts earnings and economic growth.
Software stocks are showing signs of recovery with the iShares Expanded Tech-Software Sector ETF (IGV) climbing over 1% and reaching its highest level since January, following a 20% rise from April lows. This bullish momentum is supported by options ...
Microsoft shares have fallen 11.26% year to date, trading at $421.92, below its 52-week high and 200-day average. Despite this, strong AI-driven growth, including a 123% increase in AI business revenue to $37 billion annual run rate and 40% growth in...
Diamond Hill Capital Management saw mixed results in Q1, with losses in software stocks like Microsoft and Adobe, while oil producers Chevron and Diamondback Energy benefited from rising oil prices. The firm started a new position in Gartner, attract...
Elon Musk has lost his lawsuit against OpenAI and Microsoft after a civil trial where a jury found he waited too long to file the case. The jury cleared OpenAI, CEO Sam Altman, and President Greg Brockman of all claims. Musk's lawsuit accused OpenAI ...
US tech stocks, especially those linked to AI, are currently overvalued due to overly optimistic assumptions about compute scarcity and capital expenditure growth. The author recommends reducing exposure to these overvalued US tech stocks and instead...
