Category: Daily Diary

The S&P 500 index level has decoupled from the share of constituents trading above the 200-day moving average. pic.twitter.com/VUsaqmqiDz

— Lance Roberts (@LanceRoberts) May 21, 2026

Microsoft is having to cancel its internal AI usage because the cost is too high.

This is despite Microsoft owning a large percentage of the company it gets its AI from.

The end is coming and the AI collapse has begun.

— BladeoftheSun (@BladeoftheS) May 21, 2026

🦔Microsoft canceled its internal Claude Code licenses this week after token-based billing made the cost untenable, even for a company with effectively infinite cloud resources. Uber's CTO sent an internal memo warning the company burned through its entire 2026 AI budget in just… pic.twitter.com/zBGccaP3e6

— Hedgie (@HedgieMarkets) May 21, 2026

This chart is showing a classic late-cycle / speculative momentum setup becoming increasingly unstable.

Similar markets in:

* late 1999 / early 2000 momentum exhaustion
* late 2021 speculative growth blowoff
* mini-versions in 2018 and 2020 https://t.co/DRQqGwdfep

— Tobias Carlisle (@Greenbackd) May 22, 2026

Margin debt is surging into territory that has some investors on edge, firmly in what many would call the danger zone. For now, however, margin debt expansion supports the momentum upside, but any reversal will also fuel the sell-off. It's a double-edged sword that cuts the… pic.twitter.com/0gImirAhMm

— Lance Roberts (@LanceRoberts) May 21, 2026

The inflation-adjusted economy looks a lot weaker than the headline numbers suggest.

Since January 2020, retail sales in current dollars are up nearly 50%.

But after adjusting for inflation, real retail sales are up only about 15%.

A huge portion of the “growth” consumers are… pic.twitter.com/pwmJiV6PrD

— TreasuryBonds.com (@TreasuryBonds1) May 21, 2026

Hyperscalers will end up funding their own nuclear plants out of pure desperation. You can't run a trillion dollars of next-generation compute on a transmission grid built during the Eisenhower administration

— Macro Alpha (@MacroAlphaHQ) May 21, 2026

600kW per rack by 2027 on a grid where the average US data center draws 20-30MW total. Vera Rubin Ultra at scale means a single hyperscaler cluster could draw more power than a mid-sized city. The grid infrastructure to support this doesn’t exist and can’t be permitted fast…

— Silent Fill (@Silent_fill0) May 21, 2026

Major tech companies began restricting internal AI compute resources this week for employees. I expect similar behavior across the corporate world, which will temporarily cap demand – thus demand on electricity and compute resources. Also, summer is approaching, when energy…

— Andrew G. Huff, Ph.D., M.S. (@AGHuff) May 21, 2026

Everyone is focusing on the soaring memory cost in the Vera Rubin rack. Here is the real shocker.

US power grid can barely keep up with the current setup. pic.twitter.com/OeUlvJag5Q

— zerohedge (@zerohedge) May 21, 2026