AI gains momentum... but employment does not

While the markets celebrate AI, tech employees are facing a very different situation.

US technology companies announced over 81,000 job cuts in Q1 2026, the highest level in several years.

Oracle, Amazon, Meta, Microsoft and Snap are all reducing their headcounts, even though their valuations remain at record highs.

The contrast is striking. Corporate valuations continue to climb and investment is exploding, while workforces are shrinking. AI is perceived as a tool capable of enhancing productivity and margins. For many companies, improving margins begins first and foremost by reducing human costs.

Source: Layoffs.fyi, Wall Street Journal

Americans proving more resilient than expected

Oil prices continue to rise and prices at the pump remain high in the United States. However, relative to wages, the cost of gasoline remains manageable. The weight of gasoline in household income is far from the "maximum pain" levels observed during past major oil shocks.

The price of a gallon of gasoline as a percentage of American wages remains close to its historical average, and well below the peaks reached in the 1980s or during the period of high tension in the 2000s.

This is a crucial point for the markets. As long as gasoline does not weigh too heavily on household budgets, American consumption can continue to resist,  despite energy tensions.

Source: Janus Henderson

Profits outweighing concerns

The quarterly earnings season is in full swing. Last week marked the peak, with reports from 181 S&P 500 companies (including several tech giants such as Apple, Microsoft, Amazon, Meta and Alphabet). Despite geopolitical concerns, results remain fairly solid.

According to Factset, 84% of S&P 500 companies that have already reported have beaten earnings estimates. S&P 500 earnings growth for Q1 2026 is now expected to be around 27%, compared to only 13% anticipated at the end of March. If this figure is confirmed, it would be the strongest earnings growth since late 2021 and the sixth consecutive quarter of double-digit growth.

Source: FactSet