Greenbull Investments Sarl @GreenbullInvest: "Markets defied the old "Sell..."

Switzerland

Markets defied the old "Sell in May" adage this month, two primary drivers shaped market sentiment: impressive mega-cap tech earnings and ongoing tariff developments. Tech sector delivers amid AI investment boom: $NVDA (NVIDIA Corporation) led the charge with solid quarterly results despite Chinese trade restrictions, exceeding revenue and earnings estimates while growing its data-center business by 73%. The company confirmed sustained demand from tech giants $MSFT (Microsoft) $META (Meta Platforms Inc) and $AMZN (Amazon.com Inc) for AI infrastructure. The broader tech commitment remains robust, with Microsoft, Meta, Google, and Amazon collectively reaffirming over $330 billion in capital expenditures for 2025. These results helped alleviate concerns that tariff uncertainty and previous large investments might slow AI spending momentum. Earnings outlook remains constructive: $SPX500 earnings growth continues tracking toward mid-to-high single digits for 2025, with nine of eleven sectors projected for positive growth. While estimates have been revised downward due to trade uncertainty, corporate resilience supported by solid labor markets and contained inflation provides a stable foundation. Looking ahead to 2026, earnings could reaccelerate as the Fed potentially cuts rates modestly, new tax legislation takes effect, and companies gain clarity on the operating environment. Tariff landscape evolves but uncertainty lingers: Mixed progress emerged on trade negotiations. The administration delayed 50% European tariffs until July 9, but described China talks as "a bit stalled." A federal appeals court reinstated Trump-era tariffs after overturning a lower court ruling, though further hearings are scheduled. Peak tariff rates and peak fear likely remain behind us. PCE inflation came in at 2.1% year-over-year for April, below forecasts and approaching the Fed's 2% target, suggesting companies have successfully managed tariff impacts thus far. The strategy remains clear: stay invested and diversified, balancing technology exposure with sectors like financials and healthcare that offer tariff protection and economic growth sensitivity.

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