Weekly Market Recap – June 8, 2026

U.S. companies have an enviable problem: they’re drowning in cash. Since their prior peak in 2021, S&P 500 profit margins have risen 170bps to 15.6%. While the money pot has grown, so too have its uses. CEOs are preparing for the AI era, with capex expected to growth 33% in 2026 on top of 23% in 2025. The hyperscalers alone are projected to spend $700bn this year, hitting 100% of their operating cash flow, and they’re not the only ones. Capex for the rest of the S&P 500 is on track to reach $840bn, up 11% from 2025. While uses vary among non-hyperscalers, companies are investing in modernizing their tech stacks so they can effectively apply AI. M&A activity has also remained remarkably strong. 1Q26 announced volumes were the second highest ever, outdone only by the quarter before.