It's Been A Bleak Start To 2024 For The Magnificent 7 Tech Stocks After Crushing The Market Last Year

• The so-called Magnificent Seven stocks are off to a shaky start in 2024.

• According to Refinitiv, they have already lost $316 billion this year.

• The biggest loser was Apple, whose shares fell 4% as investors feared a slowdown in sales.

2023 is off to a rocky start for the big tech stocks dominating the market

According to data from Refinitiv, the market value of the "Magnificent Seven" (Apple, Microsoft, Alphabet, owner of Google, Amazon, Nvidia, the main meta-platform of Facebook and Tesla) fell by $316 billion in the first two days of 2024 negotiations .

Apple led the decline, and its shares fell more than 4%, valuing them at about $130 billion. Investors bought shares of the iPhone maker after Barclays cut the stock due to slow hardware sales.

Tesla also fell 4% after overtaking BYD as the world's largest electric car maker, while the value of Elon Musk's company fell by nearly $32 billion. It delivered 484,000 vehicles in the fourth quarter, behind its Chinese rival's 526,000.

Microsoft, Alphabet, Amazon, Nvidia and Meta are also turning red this year and investors are starting to lower their interest rates.

Traders expect six rate cuts of 25 basis points by the end of the year, according to the CME FedWatch tool.

But in a tough note published on Wednesday, policymakers said they were "extremely cautious about inflationary risks." Rising interest rates are bad news for stocks, as investors can get better relative returns by buying bonds or keeping their money in the bank.

"We will see some gains soon," said Joshua Mahoney of Scope Markets. "Doubt remains about the prospect of a 150 basis point cut in interest rates that the market currently expects, so there is a risk that Fed members will somehow try to combat those expectations."

The Magnificent Seven stock's rocky start to 2024 stands in stark contrast to last year's big gains.

According to Goldman Sachs, the group will account for nearly three-quarters of the S&P 500's total earnings in 2023. Nvidia, Meta and Tesla rose more than 100%.

Read the original article on Business Insider

NLS 382 Nicky Allan War and the future of mankind