• 1st Source management flagged a “low hire, low fire” US labor market, citing monthly job growth averaging roughly 50,000 to 100,000 with layoffs steady and jobless claims showing no material pickup.
• Management pointed to about 104 million people outside labor force, framing slower labor supply growth as a structural shift that raises reliance on productivity rather than hiring.
• Technology investment, including AI, was cited as key driver of productivity, with benefits skewing toward corporate profit margins and shareholders rather than wages.
• AI spending was projected to reach about USD 1 trillion by 2027 from about USD 150 billion in 2022, with platforms able to scale without proportional labor growth.
• Management highlighted potential opportunity in mid-caps, small-caps, international equities, citing valuations around 15x earnings versus about 21x to 22x for S&P 500, with earnings expectations for smaller companies improving from 2025.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. 1st Source Corporation published the original content used to generate this news brief on May 11, 2026, and is solely responsible for the information contained therein.