Is it the end of the road for the 'Magnificent Seven'?

Category: Finance

The 'Magnificent Seven' stocks, which include Meta, Amazon, Microsoft, Alphabet, Apple, Tesla, and Nvidia, have experienced a significant selloff after a period of remarkable growth driven by AI optimism. Following disappointing earnings reports, particularly from Tesla, the stocks collectively lost over $1.7 trillion in market capitalization. The selloff has raised concerns about the sustainability of their growth amid rising interest rates and changing consumer spending patterns. Analysts suggest that the future path of interest rates will heavily influence market behavior, potentially leading to a broader distribution of investor interest across various stocks.

Keywords: Magnificent Seven, stock market, AI investment

Source: RTE.ie

Update At: 8/5/2024

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