STOCK MARKET BLOG MAY 2023

by the CEO Silvano Grimaldi of the independent asset management company GRIMALDI & PARTNERS AG

MONTHLY REVIEW

Most of the international stock markets ended the month of MAY with slight gains.

DRIVING FACTORS

Hopes for a breakthrough in the US debt dispute.
Overall, current economic data turned out better than expected.

EQUITIES IN FOCUS

Nvidia predicts sales above expectations - share increases

Nvidia has predicted sales for the current quarter well above expert expectations. The US chip manufacturer promised around eleven billion dollars on Wednesday, May 24th, 2023 after the US stock market closed. Analysts polled by Refinitiv expect $7.15 billion. In the past quarter, sales of $7.2 billion were above the forecast of $6.5 billion. Net income rose to just over $2 billion, or 82 cents a share, compared to $1.62 billion, or 64 cents a share, a year earlier. The increasing demand for artificial intelligence is driving demand for Nvidia's chips. The group's shares initially rose by around eleven percent in the after-hours trading.

MONTHLY OUTLOOK

Last year's high inflation has already fallen steadily this year. This is likely to be the end of the bear market phase. A prolonged pause in interest rate hikes by the US Federal Reserve is now generally expected.

An orderly agreement on the US debt ceiling , a permanent encirclement of a pause in interest rate hikes on the monetary policy side and better-than-expected economic data should push the stock markets higher.

After the good run of the last few weeks, we do not expect any more big jumps in the current month and thus a small consolidation at the beginning of the summer months.

STOCK RECOMMENDATION: NVIDIA