Episode 1335: Tuesday - May 26, 2026
Markets Hit Fresh Highs as Tech Surges, Oil Falls, and Dividend Yield Questions Rise
Markets Hit Fresh Highs as Tech Surges, Oil Falls, and Dividend Yield Questions Rise
Brian Szytel recaps the first trading day after Memorial Day as markets mostly rose despite fluid US-Iran geopolitical headlines, with the S&P 500 and Nasdaq closing at fresh record highs while the Dow finished slightly lower after recovering from deeper losses. He notes strong rallies in semiconductors and AI-related tech, warning of potential exuberance as charts look parabolic, alongside lower oil prices and a drop in the 10-year yield to 4.49%. Economic updates included consumer confidence at 93 (above expectations) and a modest softening in the Case-Shiller Home Price Index, which he attributes to affordability pressures but suggests a 2006-style collapse is unlikely due to supply constraints and high homeowner equity. He also addresses why S&P 500 dividend yield is lower, discusses the nuances of buybacks versus net share issuance, and explains a preference for rising dividend income over buybacks.
00:00 Welcome Back Overview
00:27 Geopolitics And Market Reaction
01:02 Tech Rally And Exuberance
01:36 Oil Rates And Deal Odds
02:38 Record Highs Year Context
03:09 Economic Data Confidence Housing
03:39 Housing Market Why Softening
04:29 S&P Dividend Yield Question
06:03 Buybacks Versus Dividends
06:58 Wrap Up And Disclosures
Links mentioned in this episode: DividendCafe.com
Brian Szytel is the Co-CIO and Senior Managing Director of The Bahnsen Group.
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