Nvidia Stock All-Time High
What is it?
Nvidia stock soared last Thursday, up nearly 25% from the previous day.* With a growing demand for AI-linked products and services, Nvidia projected second-quarter revenue to be nearly $4 billion over investors’ estimates.*
“The company anticipates a surge in demand for its AI chips that power chatbot sensation ChatGPT and other applications. Nvidia (NVDA) became the ninth public company and first chipmaker to ever hit a $1 trillion market valuation on Tuesday.”**
Why does it matter?
NVDA has performed well year to date, which points toward what the market is rewarding. At the moment, large technology companies and AI are favorites in the equity market. Those stocks are helping to hold up the ETFs they are a part of. We will see if this turns into a short-lived trade, or a trend that holds up over time. Many stocks have been much calmer than NVDA as the equity market has remained relatively stable in recent weeks.
Debt Ceiling Update
What is it?
There is an ongoing discussion by the U.S. government about a possible agreement to raise the debt limit in order to avoid defaulting .***
“U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the debt ceiling and cap some federal spending. Stocks on Wall Street closed mixed on Tuesday, pressured by worries about U.S. lawmakers opposed to a deal to raise the $31.4 trillion debt ceiling.”***
Why does it matter?
As a deal takes longer to be agreed upon investors could become more fearful of a default. The failure to pass the debt ceiling could be catastrophic to the markets. With the recent news, markets have held up well. Some stocks are at their highest price ever.**
We are confident in our positioning as the final decision on the debt ceiling is yet to be made. Should things turn out well there could be more optimism in the markets. However, The Fed may be more likely to raise interest rates again in June if markets go into that meeting on the rise.
Other articles we found interesting this week:
Japan’s long-suffering stock market is back. This boom may have ‘staying power’
Student Loan Cancellation Update: Republicans Vote to Overturn Forgiveness
High inflation fails to boost most UK companies’ profits
Current 401(k) portfolio
Our last 401(k) portfolio reallocation: 5/19/2022.
Want more information?
The weekly market insight provides a window into the process we use in our investment management process. At Breakaway, we believe markets are always changing and require a nimble yet data-oriented approach.
Our process attempts to identify trends and momentum in the financial markets. With that information, we align our clients’ portfolio accordingly in the hope to help our clients accomplish their life goals while attempting to lower the risk of a large drop in their portfolio.
Click here for more details about our investment management
Sources:
*Josh Schafer. “Nasdaq surges as Nvidia soars”. 5/25/2023. Yahoo Finance. https://finance.yahoo.com/news/nasdaq-futures-rise-as-nvidia-shares-soar-stock-market-news-today-115101195.html
**Ines Ferré. “Nvidia touches $1 trillion market cap as chipmaker rides AI wave”. 5/30/2023. Yahoo Finance. https://finance.yahoo.com/news/nvidia-touches-1-trillion-market-cap-as-chipmaker-rides-ai-wave-133530381.html
***Herbert Lash. “Shares close mixed, Nvidia’s 3% rise offsets debt ceiling jitters”. 5/30/2023. Reuters. https://www.reuters.com/markets/us/futures-rise-tentative-debt-ceiling-deal-2023-05-30/
IMPORTANT DISCLOSURES:
Educational use Only. The market update published by Breakaway Financial Group LLC (“Breakaway”) is intended to be educational in nature and is not intended to be a recommendation for any specific investment product, strategy, plan feature or other purposes. Accordingly, it should not be construed by any consumer and/or prospective client as solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation.
Advertising and Marketing. Communications such as this are not impartial and are provided in connection with advertising and marketing. This material is not suggesting a specific course of action or any action at all. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, insurance, legal or tax professional that takes into account all of the particular facts and circumstances of an investor’s own situation. No person associated with Breakaway is a licensed attorney or tax professional and the information contained herein should not be considered tax or legal advice.
Links to Third Party Content. This Market Update contains links to articles or other information maintained by unrelated third parties. You acknowledge and agree to the following: All such information is provided solely for convenience purposes only because we believe that it may provide useful content. and all users thereof should be guided accordingly. We disclaim any responsibility for the link’s performance or interaction with your computer, its security and privacy policies and practices, and any consequences that may result from visiting it. We do not control the content published by the third-party; we do not guarantee any claims made on it, nor do we endorse its sponsor or any of the content, policies, activities, products or services offered by any advertiser on the site. Breakaway assumes no liability for any inaccuracies, errors or omissions in or from any data or other information provided by the third party and inclusion or reference by Breakaway to any third party link should not be construed by any consumer and/or prospective client as a solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.
Important Information regarding Registration Breakaway Financial Group, LLC and/or Patrick Traverse offer investment advisory and financial planning services through Belpointe Asset Management, LLC, (“Belpointe”) 500 Damonte Ranch, Parkway Building 700, Unit 700, Reno, NV 89521, an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC should not be construed to imply that the SEC has approved or endorsed qualifications or the services Belpointe offers, or that its personnel possess a particular level of skill, expertise or training. It is important to read disclosures pertaining to Belpointe Asset Management at this link https://belpointeasset.com/disclosure/. Additional information about Belpointe and Patrick Traverse is available on the SEC’s website at www.adviserinfo.sec.gov.
