champc/iStock via Getty Images Market Review US equity markets faced significant headwinds in 1Q2026 amid escalating geopolitical tensions and policy uncertainty. The Russell Midcap Growth Index declined 6.35% as markets grappled with the ongoing conflict with Iran, which contributed to elevated energy prices and heightened volatility across sectors. Further, generative artificial intelligence con...
champc/iStock via Getty Images Market Review US equity markets faced significant headwinds in 1Q2026 amid escalating geopolitical tensions and policy uncertainty. The Russell Midcap Growth Index declined 6.35% as markets grappled with the ongoing conflict with Iran, which contributed to elevated energy prices and heightened volatility across sectors. Further, generative artificial intelligence continues to have significant impacts on the markets. AI is no longer just a software story; it is also a power, grid, and infrastructure investment story. Enterprise AI adoption is real, but the rollout is slower and messier than the market's most optimistic assumptions, as evidenced by the general malaise in software-as-a-service (SaaS) names throughout the first quarter. The macroeconomic backdrop remained mixed, with some positive indicators including unemployment ticking down to 4.4% and initial jobless claims falling to the 200K range. However, consumer confidence fell to its lowest level since 2014, reflecting concerns about jobs and inflation. The Federal Reserve maintained its cautious stance, holding rates unchanged with markets pricing approximately 50 basis points of cuts through year-end. (A basis point is one-hundredth of a percentage point. ) Political developments significantly impacted market sentiment as President Trump proposed consumer-focused initiatives including a ban on large institutional investors buying single-family homes and a 10% cap on credit card interest rates. Trade concerns resurfaced when the Supreme Court ruled against Trump's use of emergency tariff powers, though the White House subsequently instituted a new 10% "global tariff. " Sector performance in the Russell Midcap Growth Index showed significant divergence, with energy posting exceptional gains of more than 45% while communication services and financials declined sharply by 21% and 18%, respectively. The technology sector continued to face pressure amid ongoing concerns about AI dis...
Axon Enterprise (NASDAQ:AXON) President Josh Isner said the company is increasingly positioning itself as a broad public safety technology platform, expanding well beyond its origins as a TASER manufacturer into body cameras, cloud evidence management, artificial intelligence, drones, counter-drone systems, 911 tools and enterprise safety products. Speaking at an investor conference, Isner describ...
Axon Enterprise (NASDAQ:AXON) President Josh Isner said the company is increasingly positioning itself as a broad public safety technology platform, expanding well beyond its origins as a TASER manufacturer into body cameras, cloud evidence management, artificial intelligence, drones, counter-drone systems, 911 tools and enterprise safety products. Speaking at an investor conference, Isner described Axon’s evolution since he joined the company in 2009. He said Axon’s move into body cameras led to a need to manage large volumes of video evidence, which in turn drove the creation of Evidence.com, the company’s video management platform. Isner said Evidence.com now manages “about 40 times as much data as the Netflix library” and described Axon as an early mover in bringing cloud technology to public safety. From there, he said, Axon expanded into real-time capabilities, in-car video, AI and other adjacent categories. AI Adoption Expands Across Public Safety Isner said Axon has become a leading AI provider in public safety, citing $750 million in sales last year from its AI product line. He said bookings grew almost 40% last year, while revenue has grown 30% for “a few straight years” and 25% for seven straight years. Large domestic law enforcement agencies are leading AI adoption, Isner said, while midsize and smaller agencies are following behind. He said the efficiency benefits are generally greater for larger departments with more complex workflows. One example is DraftOne, an Axon product that listens to body camera recordings and writes a first draft of a police report. Isner said DraftOne can save officers about 20% to 30% of their time, allowing them to spend more time in the field. Isner also highlighted Axon Gravity, introduced at Axon Week, which he said is designed to connect police department systems to provide data visualization, real-time insights and reporting. He said Axon sees an opportunity for AI to reduce reliance on some one-off tools used for task...
BofA Securities is turning less bearish on the yen and sees three catalysts that could eventually turn it outright bullish, even as the currency drifts back toward 160 per dollar. The bank lifted its view on the yen to neutral from bearish, citing signs of improving structural flow dynamics as other major currencies face their own vulnerabilities. Strategist Shusuke Yamada also lowered his end-202...
BofA Securities is turning less bearish on the yen and sees three catalysts that could eventually turn it outright bullish, even as the currency drifts back toward 160 per dollar. The bank lifted its view on the yen to neutral from bearish, citing signs of improving structural flow dynamics as other major currencies face their own vulnerabilities. Strategist Shusuke Yamada also lowered his end-2026 forecast for dollar-yen to 152 from 157. A more bullish stance would require either a policy shift or market conditions severe enough to force one, including dollar-yen reaching 160 and the 10-year JGB yield approaching 3%, Yamada wrote in a note dated Tuesday. A decline in Brent crude below $90 a barrel would also help. BofA’s call comes even as the yen weakens back toward 160 despite repeated bouts of suspected intervention around that level this year. While the government has declined to confirm the operations, people familiar with the matter said they began on April 30. Analysis of Bank of Japan accounts suggests the effort continued into early May and likely totaled as much as ¥10 trillion ($63 billion). Yamada said the yen has continued weakening since 2024 despite a widening disconnect from interest-rate differentials. However, “improving JPY flow dynamics, a narrowing bank loan-deposit gap, and rising real rates” could allow higher domestic yields to start supporting the currency if fiscal concerns peak. He also pointed to the currency’s improving fundamentals driven by the outperformance of Japanese equities relative to US and European peers, which could help attract capital inflows into Japan.