The week of May 27 gave markets three things worth remembering: Marvell validated the custom silicon thesis with a strong Q2 guidance beat, Micron crossed $1 trillion for the first time, and the S&P 500 completed its ninth consecutive week of gains. The macro data released Thursday reinforced the "higher for longer" baseline without breaking anything.
What did the key economic data show this week?
Three releases landed on May 28 that mattered. Consumer Confidence for May came in at 93.1, dipping slightly from an upwardly revised 93.8 in April but beating the 92.0 consensus, with respondents citing Middle East war-driven energy inflation as the primary concern.
The Q1 2026 GDP second estimate revised growth down to 1.6% annualised from the 2.0% advance reading. The downward revision was modest but confirmed the economy is slowing. Core PCE for April surprised to the downside at 0.2% month-over-month, below the 0.3% forecast, the first monthly undershoot in several months. YoY core PCE held at 3.3% as expected. Growth slowing, inflation easing slightly at the margin: a combination that keeps the June 17 FOMC on hold but gives the Fed slightly more room on the inflation side.
What did Marvell's earnings show?
Marvell (MRVL) reported Q1 FY2027 results on May 27. Revenue of $2.418 billion came in roughly in line with the $2.449 billion consensus. The real beat was Q2 guidance of $2.7 billion, above the $2.635 billion estimate and implying 35% year-over-year growth. Data center revenue hit $1.833 billion, up 27% year-over-year, accounting for 76% of total revenue. Management raised both FY2027 and FY2028 revenue outlooks citing exceptional AI bookings. Jensen Huang's endorsement of Marvell as the "next trillion-dollar company" at Computex the following week accelerated that momentum further.
What does Micron crossing $1 trillion mean?
Micron crossed $1 trillion market capitalisation around May 26-27, driven by a roughly 200% year-to-date rally. The company's entire 2026 HBM capacity is sold out, with hyperscalers locking in supply agreements ahead of deployment. Unlike prior memory cycles where oversupply collapsed pricing, AI model growth is outpacing new fab construction. Goldman Sachs named Micron a top AI winner alongside NVIDIA in research published around the same period.
What is the Fed outlook heading into June?
The FOMC meets June 16-17, with the decision at 2:00 PM ET on June 17. CME FedWatch showed approximately 99.4% probability of a hold at 3.50-3.75% as of May 31. The slight downside miss in core PCE gives the Fed marginally less pressure on inflation, but with headline PCE at 3.8% year-over-year, the bar for any pivot remains very high. The next major data inputs before the meeting are the May BLS jobs report on June 5 and CPI on June 10.
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