Markets bounced back after Friday's sell-off, which looks good for stock investors but rests on a shaky AI-driven rally.

• Jobs are picking up because company profits started rising last summer, and hiring follows profits with a lag.
• Markets are betting on rate hikes this year, but Kevin Warsh and Powell are expected to hold rates steady, which would lift stocks.
• Memory chip prices are spiking hard, which will hurt phones and PCs but not data center demand.
• Spending growth now comes almost entirely from the richest 20%, so if AI stocks crash, that wealth disappears and a recession follows.
• Trump is hinting the government could take stakes in AI companies, basically to prop up the market whenever it drops.

Outlook: Stocks likely grind higher if rates stay put, but the whole economy now leans on AI stocks holding up, with oil stuck around $90–100 as the Iran-Israel fight drags on.