Mathieson Financial Services Ltd

31/05/2026

29/05/2026

Nvidia earnings – excellent but not enough?

Last week was a busy time for markets.

In the US, markets delivered further gains. The S&P 500 rose for the eighth consecutive week. By style, small-cap and value outperformed growth and large-cap.

Chip maker Nvidia, the world’s most valuable company, reported another bumper set of results for the first quarter. Compared to the year before, sales rose by 85%, while net earnings increased threefold. In both cases, results were way ahead of expectations and confirmed high demand for data centres and AI.

Historically, Nvidia’s earnings results have dominated much of the news flow and helped set investor sentiment. Yet, the past few quarters have shown how difficult it has become for the company to wow investors sufficiently to generate a positive share price reaction. Nvidia’s share price eased after results, though it remains about 20% higher year-to-date.

Longer term, some analysts point to Nvidia’s extremely high (70%+) gross profit margins. The rapid roll-out of lower cost AI chips by competitors may not be a direct threat to Nvidia. However, it is likely to keep investors wondering how long it will be able to maintain such high margins. #

Find more: https://www.mathieson-financial-services.co.uk/article/detail/sjpp/weekwatch-26-05-2026

21/05/2026

Many parents worry that their children will struggle to find their financial feet in the current environment. Concerns include the flagging jobs market and inadequate retirement savings.

Meanwhile, high house prices make it increasingly difficult to take the first step onto the property ladder. These are all factors driving fears that younger generations will face a tougher financial future.

Read more: https://www.mathieson-financial-services.co.uk/article/detail/sjpp/saving-and-investing-for-children-and-grandchildren

19/05/2026

UK government bond yields climbed again last week, with 10-year gilt yields ending above 5.1% and 30-year yields approaching 6%, their highest levels in decades.

Political uncertainty at home, alongside concerns over public finances and higher energy costs linked to the Iran crisis, added to investor unease.

There was some brighter UK economic news, with GDP growing 0.6% in Q1 2026 - the strongest performance among G7 nations. However, questions remain over how inflationary pressures and geopolitical risks may affect growth in the months ahead.

In the US, April inflation rose to 3.8%, driven largely by higher oil and gas prices, adding pressure to bond markets and contributing to renewed equity market volatility.

Elsewhere, the FCA announced a review into how investment firms support bereaved customers, while the government published further detail on how Inheritance Tax will apply to most unused pension funds and death benefits from 6 April 2027.

Read more: https://www.mathieson-financial-services.co.uk/article/detail/sjpp/weekwatch-18-05-2026

The value of investments can fall as well as rise, and you may get back less than you invest. Past performance is not indicative of future performance. This content is for information only and does not constitute financial advice.

19/05/2026

Following bruising local election results, media reports have been awash with gossip around the prime minister Keir Starmer’s future. Judging by the UK bond market, however, lenders appear to prefer the stability of continuity over the uncertainty of a leadership challenge – at least for now.

Read more: https://www.mathieson-financial-services.co.uk/article/detail/sjpp/weekwatch-11-05-2026

08/05/2026

Motivation gets you going and habit gets you there. Zig Ziglar

07/05/2026

The Bank of England (BoE) held the base rate at 3.75% on Thursday (30 April). It is the third successive ‘hold’ vote by the BoE’s monetary policy committee (MPC), and it means rates have been stable at this level since December 2025. But with inflation likely to spike in the coming months due to sustained turmoil in the Middle East, the BoE’s balancing act is becoming more difficult.

Read more: https://www.mathieson-financial-services.co.uk/article/detail/sjpp/bank-holds-base-rate-as-balancing-act-gets-tougher

07/05/2026

Millions of UK savers are doing the right thing by putting money aside.

But many are stopping one step short.

Recent research highlights a clear pattern. Around 10 million people say they’re interested in investing, yet don’t take action. For many, it’s not about a lack of money. It’s uncertainty.

Investing can feel complex. It can feel unfamiliar. And for some, it still feels like something “other people” do.

What’s interesting is how much of a difference simple conversations can make. Nearly 40% of savers say they’d be more likely to invest after talking about it with someone they trust. Yet most people rarely discuss investing at all.

That gap between interest and action is where the opportunity lies.

Clear, relatable examples and everyday language can help make investing feel more accessible. Breaking long-term goals into smaller steps can also make the journey feel more manageable.

Ultimately, helping people feel more confident and comfortable is key to changing behaviours over time.

Read more: https://www.mathieson-financial-services.co.uk/article/detail/sjpp/strong-uk-savings-culture-but-persistent-investment-gap

06/05/2026

The S&P 500 and Nasdaq ended the week at record highs. Despite a spike in energy prices, market sentiment remained upbeat, supported by a strong corporate earnings season and positive AI newsflow.

With reporting season nearly over, the four key US-based cloud operators Microsoft Azure, Amazon Web Services/AWS, Google Cloud and Meta (known as hyperscalers), all reported strong double-digit revenue growth, reflecting strong end-user demand and a payoff for the high spending already undertaken.

This is encouraging these companies, which account for almost 20% of the S&P 500’s weighting, to raise their already aggressive spending plans. Ahead of first quarter 2026 results, they were forecast to spend just over $650 billion on capital expenditure in 2026. Cumulatively, this figure is now set to be over $700 billion. The week ended with Apple also reporting strong earnings.

So far this quarter, US companies have reported annual earnings growth of almost 30%, more than four times the mid-single digit average growth recorded over the past five years.

Read more: https://www.mathieson-financial-services.co.uk/article/detail/sjpp/weekwatch-05-05-2026

05/05/2026

US markets continue to rise despite ongoing US-Iran 'tug of war'

Upbeat sentiment towards technology and AI, together with another strong week of corporate earnings supported US markets. The S&P 500 and Nasdaq Composite indices rose to new highs. Almost one third of companies in the S&P 500 have so far reported first quarter earnings, with the proportion reporting positive earnings surprises higher than average.

Chip manufacturers were sought out by buyers, fuelling upbeat investor sentiment across the technology sector. Investors believe these companies will play a crucial role as the use of AI broadens and competition between the main players intensifies.

Carlota Estragues Lopez, SJP’s equity strategist, commented on the US market’s narrow reliance on technology since the war started. Traditional hedges such as fixed income and gold have not worked as well as they have historically. She added: “This greater uncertainty has meant investors have been reluctant to sell risk to avoid being surprised on the upside.”

Read more: https://www.mathieson-financial-services.co.uk/article/detail/sjpp/weekwatch-27-04-2026