U.S. equities advanced, supported by stronger tech stocks and resilient financials. Semiconductor weakness, Canadian auto tariff threats, and rising long-term yields did not prevent major indices from posting weekly gains.
The bond market was initially pressured this week by elevated long-term U.S. Treasury yields, as well as concerns over fiscal supply and term premium. Pressure on the long end eased temporarily after the U.S. Treasury increased the size of its long-term Treasury buyback program.
NVIDIA reported FY2Q27 revenue of USD 96.2 billion, up 18% QoQ and 106% YoY, exceeding the consensus estimate of USD 92.4 billion. Non-GAAP EPS came in at USD 2.22, ahead of market expectations. Data Center revenue reached USD 89.0 billion, supported by strong Blackwell demand, while ACIE revenue increased 25% QoQ.
The S&P 500 is market-cap weighted, with the top 25 constituents now accounting for over 50% of the index, resulting in concentration risk that exceeds dot-com era levels. We believe this risk can be mitigated through diversification strategies.
1.Healthcare Is a Major Component of Global GDP
According to the WHO and OECD, global healthcare spending exceeds USD 10-12 trillion annually, accounting for approximately 9.5%-10% of global GDP.
2.Growth and Defensive Characteristics
The global healthcare market has delivered a long-term CAGR of 5.8%-9.0%, consistently outpacing global GDP growth of 2.5%-3.5%, highlighting its structural growth and defensive qualities.
3.Structural Growth Drivers
The healthcare sector is primarily driven by structural factors and is less sensitive to economic cycles. Unlike AI and technology, its key catalysts are FDA approvals and clinical data, rather than semiconductor cycles or enterprise cloud spending.
