Record Profit Margins, Meta's Big Week, and U.S. Jobs Data Ahead — Weekly Market Update

“You don’t make money when you buy or when you sell — you make money when you wait” 
–– Aswath Damodaran

 

Last Week’s Overview

Source: Bloomberg (September 24, 2026)

Weekly Insights

Each week, we break down the key events and market movements shaping the investing landscape. From economic data to investor sentiment and global headlines, this section captures what mattered most and how it impacted markets.

Corporate Profit Margins Are Heading Toward Record Levels

Bloomberg projects that S&P 500 operating margins will reach record highs approaching 22%, well above historical levels, even with higher energy and commodity costs. Technology margins are expected to top 40%, energy companies are benefiting from stronger commodity prices, and management confidence has climbed to its highest level in over a decade as companies use technology and efficiency gains to absorb rising costs. This is an encouraging signal for the durability of corporate earnings, and it supports our focus on businesses with pricing power and strong cash generation that can turn productivity improvements into lasting profit growth.

Source: Bloomberg (September 24, 2026)

Higher Bond Yields Mean More Income for Investors

The 30-year U.S. Treasury yield reached 5.44% (its highest level since 2004) while 5-year yields moved above 5% for the first time since 2007, as a resilient economy and ongoing inflation uncertainty led investors to seek greater compensation for holding longer-term bonds. While rising yields can create short-term volatility, they also mean high-quality bonds now offer materially more income than at any point since before the financial crisis, with the added potential for price gains if rates eventually decline. We view this as a healthy normalization after years of unusually low yields, and it strengthens the role bonds can play in our portfolios as both a reliable income source and a diversifier.

Source: Bloomberg (September 24, 2026)

AI Growth Is Creating New Demand for Energy

The rapid buildout of AI data centres is becoming a major new source of electricity demand. BloombergNEF projects that U.S. power-sector natural gas consumption could rise 50% between 2026 and 2035, and data centre capacity could grow from about 46 gigawatts today to nearly 200 gigawatts. Natural gas is expected to supply as much as 76% of that new electricity demand, which means the AI investment cycle is now extending well beyond technology companies into energy producers, pipelines, and power equipment makers. For our portfolios, this reinforces the value of owning quality businesses across the full AI supply chain, not just the software and chip companies that capture most of the headlines.

Source: Bloomberg (September 24, 2026)

Key Drivers of Our Outperformance

We believe in transparency when it comes to where outperformance is coming from. This section spotlights a top-performing company we hold, a sector where we've taken a winning position, and a strategy that has driven recent success across our portfolios.

• Company Highlight: Meta Platforms Inc. (META)
  
  
• Meta was our top performer last week with a 10.51% gain, driven by renewed investor excitement about its AI ecosystem after its Muse personal assistant climbed to the top of Apple's U.S. App Store. At its Connect 2026 event, Meta unveiled an expanded lineup of AI glasses, new Ray-Ban Meta Audio products, and deeper Muse integration across its wearable devices, showing investors that its AI investments are creating real products people want to use. This is why we own Meta: it is successfully building new ways to grow beyond its core advertising business, and while its AI spending is significant, the market is increasingly rewarding companies that can turn that investment into tangible results.
  
  
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• Source: Optimize Asset Management (September 24, 2026)

• Sector Highlight: Information Technology
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• The Information Technology sector led our performance last week, with NVIDIA gaining over 5%, ASML rising nearly 9%, and Broadcom, Microsoft, and Apple all adding solid returns. What's driving this strength is a massive and ongoing buildout of AI infrastructure, which S&P Global estimates could require more than $5 trillion in capital investment, alongside the fastest U.S. business activity growth in more than 5 years. Our technology holdings are the established leaders supplying the chips, equipment, and platforms this buildout depends on. While valuations are elevated, these are companies with strong balance sheets and durable competitive advantages that we believe are well positioned to convert AI spending into lasting earnings growth.
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• Source: Optimize Asset Management (September 24, 2026)
  

• Style Highlight: Size
  
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• Our Size strategy was the week's strongest performer, with large-cap leaders like NVIDIA, Meta, Tesla, Apple, and Caterpillar delivering the majority of gains. In a changing economic environment, investors continue to favour the largest companies for good reason: they have the scale, liquidity, and financial strength to keep investing in growth through any conditions, and the U.S. large-cap growth benchmark is now up roughly 10% year-to-date. While we monitor the concentration of returns in a small group of companies, we see their leadership as earned through superior execution, and this environment continues to reward businesses with the balance-sheet flexibility to fund major strategic investments.
  

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  Source: Optimize Asset Management (September 24, 2026)
  

  
  
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What To Look For Next Week

We also look ahead to the economic reports, events, and earnings that may influence the week ahead. From inflation and jobs data to corporate updates from key market players, this section keeps you informed on what's coming and why it matters.

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• U.S. Job Openings Report (JOLTS) (Tuesday, September 29): Tuesday's report on U.S. job openings tells us how many positions employers are actively trying to fill, which is a valuable gauge of business confidence. The most recent reading showed openings rising by 89,000 to 7.27 million, with gains in manufacturing, health care, wholesale trade, and construction, while hiring and quits held steady at healthy levels. A stable job market supports consumer spending, which in turn supports the corporate profits that drive our equity holdings.
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  Source: U.S. Bureau of Labor Statistics (September 24, 2026)
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• U.S. GDP (Second Quarter, Final Estimate) (Wednesday, September 30): Wednesday brings the final reading on U.S. economic growth for the second quarter, which previously showed the economy expanding at a 1.5% annualized pace. Beneath that headline, the details were encouraging: consumer spending jumped 3.4%, its strongest gain since late 2025, business investment climbed 8.5% on strong AI-related demand, and housing investment turned positive after five quarters of decline. For investors, steady growth led by consumers and business investment is exactly the kind of backdrop that supports earnings without forcing dramatic changes in interest rate policy.
  
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  Source:  U.S. Bureau of Economic Analysis (September 24, 2026)
  
  
• U.S. Jobs Report (Friday, October 2): Friday's employment report is the most closely watched economic release of the week, offering a full picture of hiring, unemployment, and workforce participation. The most recent report showed unemployment holding steady at 4.1%, with total employment rising by 569,000 and the participation rate improving to 61.6% as more people entered the workforce. Strong employment supports household spending and corporate profits, and Friday's numbers will help shape expectations for the Federal Reserve's next interest rate decisions.
  
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  Source:  U.S. Bureau of Labor Statistics (September 24, 2026)

Source of All Economic Data: Bloomberg

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Please consult with your financial advisor before making any investment decisions.