Key Events: A blockbuster IPO, a Fed warning
Technology investment activity ramped up this week: SpaceX filed its IPO paperwork, targeting a $1.75 Trillion valuation that would rank it among the top ten largest US companies. Separately, the US government used the CHIPS act to take equity positions in 9 quantum-computing related companies.
Federal Reserve meeting minutes showed worries over persistently high inflation, a potential rate hike trigger that would pressure stocks and bonds.
Market review: More stock gains
Stocks returned to winning ways this week, driven in part by a solid end to earnings season (see chart below). While small, Mid and International stocks drove upside, the S&P 500 posted its 8th consecutive week of gains, its longest such streak since 2023.
Bonds recovered as yields dropped, but the negative equity risk premium may limit further stock upside.
Outlook: Economic strength, but stubborn inflation
This week’s data delivered a confusing message for investors: the economy is firing on all cylinders, yet that strength may be the very thing keeping inflation elevated. The Atlanta Fed is tracking 2Q GDP growth above 4%, the labor market is resilient, and business investment is surging. Under normal circumstances, this would be excellent news.
But what if the economy never cools enough to bring inflation back to target? Unlike the feared hard landing of 2022-23, the risk today is not recession. It is that inflation becomes structural — embedded in wages, energy costs, and a federal deficit running near 7% of GDP. The cost of financing that deficit at current rates only adds to the pressure, pushing long-term bond yields higher regardless of Fed actions.
For investors, this means the traditional playbook — wait for rate cuts to lift all boats — may not apply. Portfolios built for a range of outcomes, including one where rates stay higher for longer, are better positioned to weather this uncertainty. As always, the goal is not to predict the outcome, but to have a plan that works across several scenarios.
Mag 7 Earnings Turn from Bust to Boom
OneAscent Navigator Outlook: May 2026
This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client. These materials are not intended as any form of substitute for individualized investment advice. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. OneAscent can assist in determining a suitable investment approach for a given individual, which may or may not closely resemble the strategies outlined herein.
Source: Company filings Space Exploration Technologies – S-1
Market Returns reference the following indices: Large Cap – S&P 500, Mid Cap Growth – Russell Midcap growth, Mid Cap Value – Russell Midcap Value, Small Cap – Russell 2000, Developed – MSCI EAFE, Emerging – MSCI Emerging Markets, Aggregate – Bloomberg US Aggregate, High Yield – Bloomberg High Yield
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