The Future of the American Economy

Why It Matters

The rally’s concentration in politically favored, policy-supported tech and chip names increases systemic and valuation risk for investors and signals how government industrial policy is reshaping market winners. Continued momentum could lift broader markets, but narrow breadth and geopolitical volatility mean gains may be fragile and uneven across the economy.

Summary

U.S. stocks are riding a powerful momentum rally led by big tech and semiconductor names, with May surges sending several chip makers and server vendors—Micron, AMD, Intel and Dell—sharply higher and pushing major indexes to fresh highs. The move is narrow: only about 4% of S&P 500 constituents are making new highs, echoing concentration patterns seen near past market peaks. Market participants point to strong demand for chips and AI servers, plus explicit White House support and strategic investments, as key drivers, while geopolitical risk in the Middle East and oil-price swings add short-term uncertainty. Analysts note the pace of recent gains is unusual and could continue if yields and oil ease, but it raises questions about valuation and downside risk if momentum falters.

Original Description

The stock market keeps making record highs on the wings of high-flying semiconductor stocks and hopes of a cease fire in the Middle East. Meanwhile, the smartest trade in the market is to own the stocks most favored by The White House as this administration reaches back to the Reagan-era for inspiration about transforming the U.S. economy. The Express goes inside the Reagan Economic Forum to hear from leaders including JPMorgan CEO Jamie Dimon and U.S. Treasury Secretary Scott Bessent on what economic power means in 2026. Plus, Mike Rowe, America’s favorite dirty job explorer, drops in with his perspective on the future of the American workforce.