Nvidia, Marvell, HPE, Dell, and HP demonstrated that the AI buildout is not slowing — if anything, it is broadening. But cracks emerged mid-week. Broadcom’s $29.4B Q3 guide was historic, yet markets punished it for missing whisper numbers. CrowdStrike disappointed. The market began to split between pure AI infrastructure winners (networking, servers, power) and companies benefiting from the first wave but vulnerable to AI replacement (software, legacy chip incumbents). The AI trade is alive but entering a more discerning phase.

In a single week, Alphabet announced an $80B equity raise and Meta launched a multi-billion dollar secondary offering. Combined, mega-cap tech committed to raising over $160 billion from public markets — all to fund AI infrastructure. Berkshire Hathaway committed $10B to the Alphabet round. This is extraordinary in scale, and it raises serious questions: How much equity can the market absorb? What does persistent dilution do to per-share earnings growth? And if the hyperscalers are building this much compute, who are the ultimate customers? The AI capex supercycle is real — but shareholders are being asked to fund it in new ways.

Oil swung from $97 to $98 to $92.87 over five sessions as the Iran-U.S. conflict lurched between escalation and tentative diplomacy. Iran’s missile strikes on Kuwait and Bahrain on Wednesday marked a significant broadening of the conflict. The U.S. House’s war powers resolution offered a symbolic de-escalation signal. But with no Senate path and a veto expected, the military situation remains unresolved. Every week oil stays near $90–$100, the inflation picture darkens and the Fed’s path narrows further.

The May NFP report at 172,000 — nearly twice expectations — was the week’s most consequential data point. Combined with March and April revisions of +93,000, the labor market is unambiguously strong. The 10-year Treasury yield surged above 4.54%. The 20-year crossed 5%. Markets have now fully repriced Fed rate cuts out of 2026. In a world where tech and AI stocks are valued on future cash flows discounted at a risk-free rate, a “higher for longer” regime is not a minor inconvenience — it is a structural headwind for the sector’s valuations. Friday’s selloff was the market repricing that reality in real time.

Thursday’s session — where the Dow hit a record while the Nasdaq barely stayed flat — was a vivid demonstration of capital moving from high-multiple AI stocks into healthcare, financials, and consumer staples. Friday’s flight into Colgate (+4%), Coca-Cola (+3%), and J&J (+2%) deepened the signal. Whether this is a brief repositioning or the start of a sustained rotation away from AI-centric mega-caps will be the defining question of the summer. The breadth of the market is healing — but only if you look away from the Nasdaq.