Yardeni QuickTakes (Page 5)

CONSUMER DISCRETIONARY: Another Concentrated Sector

May 24, 2026 3 min read paid

We recommend a market-weight position in the S&P 500 Consumer Discretionary sector. At first glance, the sector looks strong. Its stock price index is near a record high, forward earnings is rising, and the forward P/E has held in the mid-20s (chart). The surface-level fundamentals are attractive. Look closer, and the strength narrows. Consumer Discretionary is up just 2.3% ytd, ninth among the

Ed Yardeni
Toby Hearst

US MARKET CALL: FOMO vs FEMO (Fabulous Earnings Momentum)

May 24, 2026 5 min read paid

The stock market has had an exuberant stretch since the S&P 500 bottomed on March 30. The index is up 17.8% since then through Friday, after hitting a record high on May 14. The DJIA rose to a record high this past Friday. The bears say the exuberance is irrational, driven by lots of excitement about AI. We say it is rational, based on our Buzz Lightyear

Ed Yardeni
Toby Hearst

ECONOMIC WEEK AHEAD: May 25-29

May 24, 2026 3 min read

The US financial markets are closed on Monday for Memorial Day, and the holiday-shortened week is light on economic data releases. On Thursday, the second estimate of Q1-2026 GDP will be reported alongside April's core PCED, the Fed's preferred inflation gauge. Eight Fed officials speak over the week. With little fresh data to help investors gauge whether the FOMC is turning more hawkish, they’

Ed Yardeni
Toby Hearst

Mindboggling: Quantum Computing + AI + Resilient Economy

May 21, 2026 4 min read

The Department of Commerce signed letters of intent to invest $2 billion in federal incentives under the CHIPS and Science Act across nine quantum computing and hardware companies. Rather than issuing traditional research grants, the Trump administration is taking minority equity stakes in these companies in exchange for the capital, continuing a broader policy shift toward direct government ownership in strategically critical sectors (similar to previous moves with Intel and

Ed Yardeni
Elias Griepentrog

Fed Minutes Should Please Bond Vigilantes

May 20, 2026 4 min read paid

On Monday, we made a few headlines in the financial press with our out-of-consensus prediction that the FOMC would adopt a tightening bias at the June meeting of the Fed's policymaking committee. That would be followed by a 25-bps hike in the federal funds rate (FFR) at the July FOMC meeting. Today, the minutes of the April FOMC meeting showed that the vote to maintain

Ed Yardeni
Elias Griepentrog

WEEKLY WEBCAST: Bond Vigilantes Welcome New Fed Chair Warsh With Loud Bronx Cheer

May 20, 2026 1 min read paid

The financial markets expect interest rates to remain higher for longer, notwithstanding President Trump's demands that Kevin Warsh, newly instated as Fed chief, get rates down. But the macroeconomic backdrop no longer supports an easing bias, let alone a rate cut. Paradoxically, Elias and Ed explain, a more hawkish Warsh than investors expect would actually work in Trump's favor via its downward effect on long-term

Ed Yardeni

Don't Freak Out About The Bond Vigilantes Just Yet

May 19, 2026 4 min read paid

The selloff in the US Treasury bond market continued today. The 30-year yield hit a high of 5.19%, its highest level since July 2007. The 10-year yield surged to 4.69%, its highest since January 2025 (chart). Just as unsettling as these levels is how quickly yields have risen over the past few days. We think that happened in response to last week's hotter-than-

Ed Yardeni
Elias Griepentrog

Leaders, Laggards & Breadth In The Current Bull Market

May 18, 2026 3 min read

The current bull market didn't start on March 31, 2026. Yet many commentators have noted that the bull market is at risk because it has been so narrow since then. The bull market actually started on October 12, 2022. Since then, most market segments have delivered solid double-digit gains. The problem is that several large-cap technology companies have delivered triple-digit gains, thereby making the double-

Ed Yardeni

MARKET CALL: Time for A Break Or a Brake?

May 17, 2026 5 min read paid

The S&P 500 sold off by 1.2% on Friday after hitting a record high of 7501.24 on Thursday. We are sticking with our 8250 year-end target for the S&P 500 (chart). However, the index might have peaked for a while. That's because bond yields spiked on Friday, which just happened to be Kevin Warsh's first day at the office

Ed Yardeni
Toby Hearst

ECONOMIC WEEK AHEAD: May 18-22

May 17, 2026 4 min read

On Friday, the S&P 500 fell 1.2% from its record high of 7501.24 on Thursday. A run of hot inflation data and a spike in bond yields did the damage on Friday. April headline CPI hit 3.8% y/y, the highest since May 2023, while core CPI was 2.8%. The big shocker was last Wednesday's April PPI for final demand, which rose

Ed Yardeni
Toby Hearst

COMMUNICATION SERVICES: Highly Concentrated With GOOGLE & META

May 16, 2026 3 min read

We continue to recommend a market-weight position in S&P 500 Communication Services, alongside our market-weight call on Information Technology, which we reiterated on April 25. The sector is a lopsided barbell. Alphabet and Meta together are the only two components of the sector's Interactive Media Services industry. Together, they account for almost 80% of the industry's market capitalization and 69% of its

Ed Yardeni
Toby Hearst

Another Day, Another Step Closer to a Tightening Bias

May 15, 2026 4 min read paid

Two important psychological levels are being tested in the US Treasury market right now. The 2-year yield is trading just above 4.00% this evening, May 14 (chart). That's 25bps above the current federal funds rate (FFR) range of 3.50%-3.75%. That implies investors believe the Fed may need to raise the FFR by at least 25 bps in the foreseeable future. The 30-year

Ed Yardeni
Elias Griepentrog

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