(8/06/26)

JPMorgan’s latest weekly view suggests that while investors are increasingly focused on inflation data and interest-rate expectations, the dominant market theme remains AI-driven growth. Equity markets continue to trade near record highs following a 19% rally since late March, supported by resilient earnings and continued investment into AI infrastructure.

However, economic data has become more mixed. Recent figures showed consumer confidence at 93.1 and new home sales at 622,000, indicating pockets of softness beneath the strong market backdrop. Investors are now focused on upcoming US CPI data as they assess whether inflation is cooling fast enough to justify future Fed easing.

For investment bankers, AI remains the strongest source of deal activity, particularly across semiconductors, digital infrastructure, power assets and data centres.

Market implications

• AI continues to dominate equity performance

• Markets remain highly sensitive to inflation data

• Broader economic indicators are showing signs of moderation

M&A / deal flow implications

• AI infrastructure remains the most active deal theme

• Data-centre and semiconductor activity remains elevated

• Strategic buyers continue pursuing growth assets

3 key takeaways

1. AI remains the market’s primary driver

2. CPI is the key catalyst this week

3. Infrastructure-related deal flow remains strong