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If this is your first time reading, welcome to The Investor’s Edge — a thriving community of over 23,000 subscribers striving to be better investors with an edge in the market.

Every weekend we publish “The Weekly Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

Grab your coffee and let’s dive in.

Market Talk

The major indexes all ended the week higher despite all the back on forth on tariff news.

3 Stories Moving the Market

These are some of the biggest stories from the second half of the week that had an influence on market action.

Trade truce at risk: tariff tensions roar back

President Trump reignited trade tensions this week, accusing China of violating the May 12 tariff truce and threatening retaliation. U.S. officials echoed these concerns, citing stalled negotiations and China's failure to ease restrictions on rare earth exports. The situation intensified as a federal court ruled that Trump's sweeping tariffs exceeded his authority, casting doubt on the administration's trade strategy, though an appeals court has temporarily paused the ruling.

🔑 Key Points

• Trump accuses China of breaching the May 12 tariff truce, threatening renewed trade penalties.

• U.S. officials report stalled negotiations and China's failure to ease rare earth export restrictions.

• Visa restrictions on Chinese students add fuel to the geopolitical fire.

• A federal court ruled that Trump's sweeping tariffs exceeded his authority, though an appeals court has temporarily paused the lower court ruling.

• The "TACO trade (“Trump Always Chickens Out”) gains traction on Wall Street, reflecting a pattern of market dips on tariff threats and rebounds when Trump retreats.

👀 What You Need to Know

Markets are bracing for renewed volatility as U.S.-China trade tensions escalate. While the "TACO trade" pattern has provided short-term gains for some investors, the underlying uncertainty in trade policy poses risks to global supply chains and economic stability. Investors should stay informed and consider diversifying portfolios to mitigate potential disruptions.

Nvidia beats Q1 expectations but faces China headwinds

Nvidia delivered another strong quarter, with Q1 revenue surging 69% YoY to $44.06B and EPS jumping 33% to $0.81, both beating reduced Wall Street estimates. Data center revenue hit a staggering $39.1B (+73% YoY), fueled by explosive demand from cloud giants for Nvidia’s new Blackwell chips. Management did reveal $2.5B in lost revenue due to U.S. export restrictions on China, and warned that Q2 is expected to be ~$8B lighter due to the same issue.

🔑 Key Points

• Revenue of $44.06B (+69% YoY) beat estimates by 1.76%; EPS of $0.81 beat by 10.96%.

• Data center revenue grew to $39.1B (+73%), with Blackwell GPUs making up ~70%.

• U.S. chip export restrictions cost ~$2.5B in Q1 sales and will shave ~$8B from Q2.

• Operating cash flow reached $27.4B (+79% YoY), free cash flow hit $26.1B.

• Nvidia repurchased $14.1B in shares; H20 chips face $4.5B in regulatory charges.

👀 What You Need to Know

Nvidia is firing on all cylinders operationally, with record data center growth and robust demand for its latest AI chips, but the export drama with China is becoming a real drag on future growth. Q2 guidance of $45B in revenue is solid, but still shadowed by $8B in sales Nvidia would have seen from China. CEO Jensen Huang was blunt saying China represents a $50B opportunity that’s slipping away. As Nvidia leans into inference workloads and rolls out Blackwell Ultra, the core AI thesis remains strong, but geopolitical clarity will be key to unlocking its full potential.

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Inflation stalls, but tariff risks remain

April's PCE data showed inflation essentially flat, with both headline and core rising just 0.1% month-over-month, right in line with expectations. On a yearly basis, headline cooled to 2.1% while core dipped to 2.5%, the lowest in months. Consumer spending slowed to +0.2% and savings rose, reflecting a more cautious mood. While markets welcomed the print, economists are warning that the real inflation story may be delayed, as Trump’s latest round of tariffs has yet to work its way into prices.

🔑 Key Points

• Headline PCE: +0.1% MoM (vs. +0.1% est.); +2.1% YoY (vs. +2.2% est.)

• Core PCE: +0.1% MoM (in line); +2.5% YoY (vs. 2.6% prior)

• Personal income jumped 0.8%; spending slowed to +0.2% from 0.7%

• Food prices -0.3%, energy +0.5%, shelter +0.4% (still sticky)

• Personal savings rate climbed to 4.9%, signaling more cautious consumers

👀 What You Need to Know

Inflation may be trending in the right direction, but the market can’t fully relax. The muted April print hasn’t yet absorbed the potential price pressure from Trump’s latest tariffs, especially on core goods, and if passed through, that could reverse recent progress. Add in slowing consumer momentum and the Fed finds itself stuck between weak demand and rising costs. Until there’s clarity on trade policy and inflation stickiness, rate cut hopes should remain tempered.

In Other News

In this section, we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.

• Trump delays 50% tariff on European Union until July 9th

• US curbs chip design software, chemicals, other shipments to China

• Fed Chair Powell met with Trump at the White House Thursday and told him rate decisions can’t be political

• Trump Hands Palantir the Keys to America’s Data

• Germany considers 10% tax on internet giants

• Tesla Set to Launch Robotaxi Service in Austin on June 12

• Tesla European sales decline amid increasing competition

• Costco tops earnings and revenue estimates as sales jump 8%

• Salesforce shares fall as software maker shows pockets of weakness

• Salesforce to acquire data management company Informatica in $8 billion deal

• Japan’s Nippon expected to close acquisition of U.S. Steel at $55 per share

• Eli Lilly to buy SiteOne for $1 billion with eye on non-opioid pain drug

• Ford recalls nearly 1.1 million vehicles over rearview camera software issue

• Dell shares climb after company raises full-year profit outlook on AI demand

• HP sinks 15% as company misses on earnings, guidance due to ‘added cost’ from tariffs

• Ulta Beauty Reports Q1 Earnings and Completes $669M Buyback as Guidance Raises

• E.l.f. Beauty to acquire Hailey Bieber skincare brand Rhode in deal valued up to $1 billion

• Dick’s Sporting Goods stands by full-year guidance — even with tariffs looming

• United Airlines plans to return to JFK again in new partnership with JetBlue

• Southwest Airlines will start charging $35 checked bags

• Gap shares plummet as retailer says tariffs could cost between $100 million and $150 million

Edge+ Posts of the Week

We continue to push out more and more content every week to give investors that edge. Here are the posts Investor’s Edge+ subscribers received this week.

The Edge Report

Mondays are for the investors. Every Monday morning we share exactly what we’re watching in the week ahead, how we’re positioning, and even share a sneak peek into our systems and models. This week we discussed Nvidia’s earnings, the upcoming inflation report, and the return of tariff headlines. See the latest full report here:

The Options Edge Report

This week we dropped the latest Edge Options Report for our members—packed with actionable insights and options strategies. We broke down a play on LLY following its recent weakness. See the latest report here:

Earnings Recap

Every week during earnings season is extremely busy for us here at the Edge as we dive into over 100 reports and provide our members with top tier breakdowns and insights. This week we saw earnings from Nvidia, Costco, Salesforce, Ulta Beauty and Dick’s Sporting Goods. See this week’s recap:

The Week Ahead

The labor market will be in focus next week and both the Fed and market will be watching the data closely as the next interest rate decision approaches. We also get a number of earnings reports that will give us further insights into the consumer and potential tariff impacts.

Earnings Reports

Earnings season may be winding down but there are still several names we cover here at Edge on the calendar next week, including three retailers, a major chip company and a leading cybersecurity stock. Here is the list of names we will be covering:

• Monday 6/2: --

• Tuesday 6/3: CrowdStrike and Dollar General

• Wednesday 6/4: Dollar Tree

• Thursday 6/5: Broadcom and Lululemon

• Friday 6/6: --

Here is the full calendar of scheduled earnings releases:

Economic Reports

Next week is all about the labor market as nonfarm payrolls, unemployment, JOLTs, ADP employment and initial jobless claims are all on the calendar. We will also get manufacturing and services PMI.

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Thank you for reading this edition of the Weekly Wrap-Up. Have a great weekend!

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Mark & Chris

The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.