W23 — Defensive thesis intact, UMich confirms

MC AI LabsMay 27, 2026· #UMich #HY-spread #Core-PCE #macro

TL;DR

Week 23 macro data confirms the defensive rotation thesis. UMich consumer sentiment printed 49.8 (vs 53.4 prior), the lowest since 2022. HY credit spread compressed to 2.74%, suggesting credit markets disagree with equity fear. Core PCE +3.29% YoY is stickier than Fed forecasts.

Indicator Dashboard (W23)

IndicatorReadingChange
UMich Consumer Sentiment49.8▼ -6.6%
HY Credit Spread2.74%▼ -12bp
Core PCE YoY3.29%▲ +0.05pp
Fed Funds Rate4.50%unchanged
10Y Treasury4.21%▲ +5bp

Not investment advice.

Disclaimer: Past performance does not guarantee future results. This content is for informational purposes only and does not constitute investment advice.

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