Divergence -
The U.S. economy, and the stock market; specifically the (AI) trade.
Paradox - AI (Valuations), and (Extreme) volatility; in the stock market.
Recent U.S. economic, and stock market observation(s) over the past week -
The AI trade is back (for now) after reporting from Micron (MU).
AI trade valuation(s) are (trying to make a run back) to the NASDAQ high on 10/29/25 whether justified (or not).
The U.S. economy is (still) moving towards a potential Major Recession in 2026.
The Unemployment rate has reached its' highest level since October 2021 with Corporate layoffs to resume Q1 2026 with claims following.
Q1 2026 is (currently) scheduled to have Major Downsizing in the Corporate world especially in the Technology sector.
ISM manufacturing, otherwise known as PMI; has been down for (9) consecutive month's; since Trump tariffs were enacted.
Finally, November Core CPI (Inflation) came in at 2.7% but was missing data from October due to the U.S. Government shutdown.
Inflation (actually) rose month-to-month.