Read the highlights of this week’s commentary from Helios:

  • A debt ceiling deal was reached over the weekend that suspends the ceiling until 2025 and curbs growth in nondefense spending amid a few other tweaks such as welfare work requirements and energy permitting. Congress needs to pass the deal, though Treasury Secretary Yellen extended the deadline to June 5. Latest reports as of Monday morning appear the deal is on track to pass both houses of Congress.
    • Personal income and spending rose in April, climbing 0.4% and 0.8%, respectively. However, while total spending continues to grow above trend, when adjusted for inflation, the rate of growth comes back down to around pre-COVID trends.
    • Nvidia’s earnings smashed expectations and fueled a rally in the Nasdaq following their earnings results. The company posted $7.19B in first-quarter revenue, well ahead of the $6.5B consensus expectation, but perhaps more importantly, the company guided its second quarter revenue to $11B on the back of surging demand for their chips in AI applications. Their previous quarterly record was $8.29B. As a result, the stock surged over 24% the following day.

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