11AM Hour: Undersecretary of Defense Emil Michael, Former White House Coordinator for the Middle East & New AI Model Competition 10/6/26

Record S&P highs mask a narrow, AI-and-wealthy-consumer-driven economy as open-weight AI models and Pentagon oversight reshape competitive and regulatory dynamics.

• Market breadth deteriorates: S&P 500 hit a new all-time high (~7,840) but David Rosenberg warned the median S&P stock is down 17% from its 52-week high, calling it a dangerously lopsided market.
• Two-pronged economy: Rosenberg said AI capex (tech construction up ~60% y/y) and high-end wealth-effect spending are propping up GDP while non-data-center construction is down 7% and real consumer income growth is roughly flat.

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