The Magnificent 7 dropped by more than $750 Billion yesterday
Source: Evan, Yahoo Finance
WHAT A DAY...
🌩 Mag 7 stocks all finished in the red today and have erased erased over $500 BILLION of market cap today. ⚡ Nasdaq and S&P 500 had worst their day since 2022 ☄ The S&P 500 just fell over 2% for the first time in 356 trading sessions. It ended the longest stretch without a >2% pullback since 2007 Source: Bloomberg
Highest Wall Street price targets for the Mag 7
source: Evan on X
Long Magnificent 7" has been the most crowded trade among investors for 16 months straight, even after the recent drop.
This is according to 71% of 242 global fund managers polled by Bank of America. This percentage is up from 69% and 52% in June and May Source: BofA, The Kobeissi Letter
There are 2 ways to look at this chart:
1/ Mag7 outperformance is justified by positive earnings revision (vs. negative revision for the rest); 2/ The bar has been raised quite high for the Mag7 (so beware if they disappoint) while the bar is low for the other 493 stocks (there is room for positive surprise) Source: Bloomberg, RBC
The S&P 493 earnings have been flat to down for the past five quarters.
2Q is expected to mark the first growth quarter for the Other 493. Could it lead to a more balanced market? Source: BofA
From Mag 7 to... Mag 1
$NVDA is up 122% ytd and contributed to toughly 33% of $SPX gains… Source: Rahul on X
It’s official: Nvidia, Apple, and Microsoft are now bigger than China’s entire stock market.
Source: Bloomberg, www.zerohedge.com
