Happy Monday! AI is dominating headlines and driving markets higher, but one of the world’s most renowned investors isn’t fully buying the hype. Discover why.

Also, something big is brewing in the bond market, and one of Wall Street’s most powerful voices says we’re not ready. What does he see coming, and why might it catch everyone off guard? Read on for more details.

Plus, if you’re interested in a cutting-edge solar tech company powering the future of AI satellites, check out today’s sponsor.

In Today's Edition

• MARKET RECAP

• FIVE ZINGERS

• MARKET HISTORY

• ONE FOR THE ROAD

Ray Dalio Says Investors Are Chasing AI Hype Like It's 1999 And It Could End Just As Badly: Here's What He Recommends

In a recent interview, legendary investor Ray Dalio raised eyebrows by drawing parallels between today’s AI mania and the dot-com bubble of the late 1990s.

While the buzz around AI-driven innovation continues to captivate Wall Street, Dalio — who founded one of the largest hedge funds in the world — urges investors to look beyond the headline and to remember how quickly sentiment can sour when fundamentals are ignored.

Dalio sees the long-term potential with AI, however, he’s sounding the alarm on soaring valuations, crowded trades and a dangerous reliance on borrowed money. With global tensions rising and monetary policy tightening, he warns that many investors are chasing performance in a way that feels all too familiar — and not in a good way.

"Everybody says it's going to be great," Dalio said. "But you have to pay attention to this.”

Ascent Solar Inks Deal With AI-Satellite Company NOVI Space

Ascent Solar Technologies (ASTI), the maker of featherweight, flexible and durable CIGS thin-film photovoltaic (PV), has inked another space deal, this time with NOVI Space Inc., the AI-satellite maker.

NOVI is tapping Ascent to supply PV array blankets for its AI edge processing constellation which is scheduled to launch in the early part of 2026.

NOVI says it selected Ascent Solar for this project because it provides plug and play arrays that enable NOVI to launch the satellite constellation in the first quarter of 2026. Other solar providers can take months to a year to develop arrays. That’s not the case with Ascent Solar, which can get the job done in six to eight weeks. To learn more about Ascent Solar’s technology, click here.

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Last Week: U.S. stocks ended mostly flat Friday with trade negotiations between the U.S. and China stalling, with President Trump even accusing China of violating trade agreements. Still, stocks closed the week and month on a high note with the Nasdaq soaring 9.6%, and the S&P 500 climbing 6.2% in May. Both indices posted their best monthly gains since November 2023. The Dow was right behind as it finished the month up 3.9%. The Fed’s preferred inflation gauge, the personal consumption expenditure (PCE) index, fell more than expected to 2.1% annualized in April, while core PCE eased to 2.5%. Despite inflation moving closer to the Fed’s 2% target and a still-healthy labor market, policymakers are expected to remain cautious as they monitor the inflationary impact of recent and potential future tariffs. Additionally, bond yields declined, with the 10-year at 4.40%, and oil prices slid ahead of an OPEC+ meeting on a potential supply increase.

On Our Radar: Analysts will turn their attention to the ISM manufacturing and construction spending report — due later this morning — for fresh insights on the economy. On the earnings front, Credo Technology Group (CRDO) will report earnings after the market closes today, with Dollar General (DG) and Nio (NIO) reporting before the bell on Tuesday.

Magnificent Six: A gauge tracking the “Magnificent Seven” surged more than 15% in May, easily outpacing the S&P 500, which was up 6% for the month. However, not everyone was outperforming. One company just had its best run in more than a year, while another had its worst in seven years. Read all the details here. 

Palant-Cheer: Palantir is cashing in as the Trump administration expands the company’s role across key federal agencies. With contracts topping nearly $1 billion and talks with the IRS and Social Security underway, read on to see why Palantir is becoming the ultimate data insider — and why investors are paying close attention now.

China Selloff: U.S.-listed Chinese stocks such as Alibaba, PDD and Baidu tumbled after President Donald Trump accused China of violating an agreement with the U.S. With markets rattled and court rulings on global tariffs getting flipped, discover why investors should brace for volatility and what’s expected next.

Flight Delay: Air mobility companies Joby and Archer are taxiing down a $1 trillion runway, but their aircraft aren’t cleared for takeoff just yet. Don’t get grounded by delays, click here to find out when these eVTOLs will finally lift off, or if they’ll stay stuck on the tarmac.

Gap Down: Shares of Gap tanked 20% despite beating analyst expectations on the top and bottom lines. Read on to see why the selloff occurred and if this presents a great buying opportunity.

Don’t miss Benzinga’s must-attend virtual forum on the rapidly evolving ETF market! Join us on June 5th at 10 am ET to explore the latest trends in crypto ETFs, thematic ETFs and innovative structures. Gain valuable insights into strategies reshaping how financial advisors guide clients and how retail investors adjust their portfolios.

On This Day In 2021…

Carvana hit a major milestone when it debuted on the Fortune 500 list at No. 483 — an extraordinary achievement just nine years after its founding in 2012. It was one of the quickest climbs in the ranking’s history, with only Amazon and Google making the list faster. The recognition highlighted not just Carvana’s $5.6 billion in revenue in 2020, but also its transformation of the used car industry with a streamlined, end-to-end digital buying experience. Since its IPO at $15 per share and a $2 billion valuation, Carvana’s stock is currently trading around $325, giving it a market cap of nearly $70 billion.

QUOTE OF THE DAY

"Don't look for the needle in the haystack. Just buy the haystack!" 

— Jack Bogle

Jamie Dimon Warns Of Bond Market Crisis Caused By US Debt Binge: 'You're Going To Panic'

Jamie Dimon doesn’t shy away from making bold predictions, but when he makes them, Wall Street takes notice.

The JPMorgan CEO is warning that a major dislocation in the bond market isn’t just possible — it’s inevitable. 

Speaking to policymakers and financial leaders at the Reagan National Defense Forum, Dimon pointed to an uncomfortable truth: the U.S. has spent and borrowed at unprecedented levels, and the global monetary system is now saturated with trillions in stimulus.

The result? A fragile market structure that may be one unexpected move away from a serious break. Dimon doesn’t predict a slow unraveling — he warns of a sudden crack that could catch investors off guard.

“It’s going to happen, and you’re going to panic. I’m not going to panic.”

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