US Morning Update

Global markets are mixed to lower as oil prices exceed $110/bbl amid geopolitical tensions, while the S&P 500 faces risks from extreme AI-driven concentration. Goldman Sachs suggests pivoting toward equities with fundamental support or laggards to hedge against a potential momentum reversal.

Key Takeaways

• 1.Global markets are under pressure due to rising oil prices (Brent >$110/bbl) following the continued blockade of the Strait of Hormuz.
• 2.China's economic recovery is faltering, with April industrial production and retail sales significantly missing expectations.
• 3.The AI trade has become hyper-concentrated, accounting for 85% of the S&P 500's 10% year-to-date return.

Table of Contents

• Market Intelligence: US Morning Update
• How to position from here?
• Competition in the age of AI
• Focus on: US-China relations
• Looking Ahead
• Performance of Global Indices (as of May 18, 2026)
• Rating & Conviction List Changes (as of May 18, 2026)
• Today's Events (May 18, 2026)
• US Morning Call for May 18, 2026
• Notable Research not on the Morning Call
• Listening in: Webinars, Conferences & Podcasts
• Resource Corner
• Disclosure Appendix

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