Roundhill Magnificent Seven ETF (NASDAQ: MAGS)

Ultime notizie per Roundhill Magnificent Seven ETF (NASDAQ:MAGS)

Magal Security Sys

Technology

Consumer Cyclical

Communication Services

The Fund is an actively managed exchange-traded fund (ETF) that pursues its investment objective by seeking investment exposure to the largest companies (Underlying Issuers) in one or more of the following industries, each of which is defined by an independent industry classification scheme: Technology Hardware Industry; E-Commerce Discretionary Industry; Internet Media & Services Industry; and Software Industry (collectively, the Technology Industries). The Fund generally will offer exposure to between five and ten Underlying Issuers primarily through the use of swap agreements and/or forward contracts. The Fund also may invest directly in the equity securities issued by the Underlying Issuers, such as common stock or American Depositary Receipts (ADRs), or other securities that provide similar exposure to one or more Underlying Issuers when the Adviser believes doing so is in the best interests of the Fund and its shareholders.

Tesla, Inc.

Meta Platforms, Inc.

Roundhill Magnificent Seven ETF

MAGSEIS FAIRFIELD ASA by MAGSEIS FAIRFIELD ASA

The U.S. stock market experienced a setback at the end of October, breaking a five-month winning streak as election uncertainties and mixed tech <a href="https://www.benzinga.com/earnings">earnings dampened risk sentiment</a>.
A key measure of market turbulence, the CBOE Volatility Index, or VIX, surged by 34% last month, marking the third-largest increase for an October <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41665265/vix-index-notches-third-strongest-october-spike-in-an-election-year-s-p-500-snaps-5">in an election year.</a>
Tech giants' earnings were underwhelming, except for Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) and Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>). None of the other &#8220;Magnificent Seven&#8221; companies posted positive weekly performance. As a result, the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) fell nearly 2% for the week. This marks the worst weekly performance in two months.
Among mega-cap companies, the top performers for the week were Charter Communications Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHTR#NASDAQ">CHTR</a>) and Booking Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NASDAQ">BKNG</a>), both rising approximately 9%. Booking also marked the strongest weekly gains since August 2022. 
The main laggards were Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) and Eli Lilly and Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>), down 9% and 8%, respectively, for the week. 
On the macroeconomic front, the U.S. economy saw a surprising slowdown in job growth in October, with <a href="https://www.benzinga.com/news/econ-s/24/11/41684710/us-economy-adds-only-12-000-jobs-in-october-sharply-misses-estimates-as-hurricane-strikes-pummel-hir">nonfarm payrolls increasing by just 12,000</a>—nearly a four-year low and well below the expected 113,000.
Factors such as hurricanes and strikes likely contributed to the hiring slowdown, while unemployment held relatively steady, indicating no significant rise in layoffs.
The labor market report has strengthened expectations for Federal Reserve rate cuts. Markets are fully pricing in a 25-basis-point cut at Thursday's meeting and assigning an 85% probability to a similar cut at the Fed&#8217;s final meeting of the year in of December.
<h3 class="wp-block-heading">State Betting Odds</h3>
As the 2024 U.S. presidential election approaches, state-by-state betting odds reveal a tight race between Donald Trump and Kamala Harris, with key battleground states like Pennsylvania, Michigan, and Arizona showing narrow margins, making them pivotal <a href="https://www.benzinga.com/general/sports-betting/24/10/41589659/trump-vs-harris-state-by-state-2024-election-betting-odds-which-candidate-is-favored-to-wi">in the final outcome.</a>
<h3 class="wp-block-heading">Gold ETF Surge</h3>
The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) saw $1.8 billion in inflows during October, its highest in over two years. Rising investment demand continues pushing gold toward record highs as investors turn to this safe-haven asset at a time of political <a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41663633/biggest-gold-etf-posts-highest-monthly-inflows-in-2-5-years-as-investors-rush-to-">upheaval and fiscal uncertainty.</a>
Ford Halts F-150 Lightning Production
Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) is pausing F-150 Lightning production from Nov. 18 to Jan. 6, responding to Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)'s Cybertruck sales surge. The move aims to recalibrate production with demand and improve profitability for <a href="https://www.benzinga.com/news/24/11/41677673/ford-f-150-lightning-pickup-truck-production-to-be-halted-temporarily-after-teslas-cybertruck-races">the Michigan-based automaker.</a>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/general/24/11/41693751/biden-can-blame-boeing-for-massive-jobs-data-miss">Biden Can Blame Boeing For Massive Jobs Data Miss</a></li>
</ul>
Image: Shutterstock

Earnings

Equities

Large Cap

Macro Economic Events

Sector ETFs

Broad U.S. Equity ETFs

Commodities

Politics

Econ #s

Economics

Federal Reserve

ETFs

AMZN

BKNG

CHTR

GOOGL

MAGS

TSLA

Market Volatility Soars Ahead Of Elections, Tech Earnings Mixed, Strikes And Hurricanes Knock Employment Down: This Week In The Markets

A hiring freeze in October lifted market expectations for a Federal Reserve interest rate cuts, providing relief to U.S. <a href="https://www.benzinga.com/news/econ-s/24/11/41684710/us-economy-adds-only-12-000-jobs-in-october-sharply-misses-estimates-as-hurricane-strikes-pummel-hir">stocks after Thursday's decline</a>. 
The U.S. economy added only 12,000 jobs in October, 211,000 fewer than in September. This marked the lowest monthly pace since December 2020 and sharply missed estimates of 113,000.
Market pricing now reflects a full probability of a 25-basis-point rate cut at next week's Federal Reserve meeting, with the likelihood of another cut in December surging to 85%, according to the CME FedWatch tool.
<h2 class="wp-block-heading">Hurricanes, Strikes Knock October Employment Down</h2>
Beyond the dismal October employment figures, which suggest a recession-like scenario, factors such as hurricanes and strikes have significantly disrupted hiring across the nation.
Hurricane Helene hit Florida's Gulf Coast on Sept. 26, followed by Hurricane Milton on Oct. 9, prompting widespread evacuations and disrupting multiple economic sectors.
"It is likely that payroll employment estimates in some industries were affected by the hurricanes; however, it is not possible to quantify the net effect on the over-the-month change in national employment, hours, or earnings estimates," the Bureau of Labor Statistics (BLS) stated in its report.
Additionally, layoffs surged in manufacturing, rising to 46,000 — the highest since 2009, excluding the pandemic months of March and April 2020. "Manufacturing employment decreased by 46,000 in October, reflecting a decline of 44,000 in transportation equipment manufacturing largely due to strike activity," the BLS added.
Despite stagnant job growth in October, the unemployment rate held steady at 4.1%, indicating that businesses remain committed to retaining their workforce.
<h3 class="wp-block-heading">Equity ETFs Rise On Rising Rate-Cut Bets</h3>
<ul>
<li>The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), tracking the S&amp;P 500 index, rebounded 0.7% after Thursday&#8217;s 1.9% slump. </li>
<li>The tech-heavy Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), replicating the Nasdaq 100, was 0.6% higher. </li>
<li>Small caps outperformed, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) soaring 1.2%. </li>
<li>The Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) rose 1.4%. On Thursday, it tumbled 3.9%, marking the sharpest 1-day drop since late July.</li>
<li>Sector-wise, the Consumer Discretionary&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) led gains, up over 2%, fueled by a 6% post-earnings rally from Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).</li>
<li>The Direxion Daily AMZN Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZU#NASDAQ">AMZU</a>) skyrocketed by 13%. </li>
<li>Rising expectations for Fed rate cuts fueled gains in real estate industries, with the iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>) rising 1.8%. </li>
<li>Semiconductors rebounded after tumbling by 3.9% on Thursday. The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) rose 1.6%. Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) was among the best performers following better-than-expected results. </li>
<li>The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) – the biggest physically-backed gold ETF – also rose 0.5%, rebounding after Thursday&#8217;s 1.6% decline. </li>
<li>The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), which tracks West Texas Intermediate (WTI) crude performance, gained 1% amid rising geopolitical tensions in the Middle East following Iran&#8217;s retaliatory attack on Israel. </li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41663633/biggest-gold-etf-posts-highest-monthly-inflows-in-2-5-years-as-investors-rush-to-">Biggest Gold ETF Posts Highest Monthly Inflows In 2.5 Years As Investors Rush To Safe Haven Ahead Of Presidential Election</a></li>
</ul>
Photo: Shutterstock

Specialty ETFs

Tech

AMZU

INTC

iShares Dow Jones US Homenstruction Index Fund

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

Select Sector SPDR-Consumer Discretionary

Stocks Rebound After Selloff As October Hiring Slump Fuels Interest Rate Cut Bets: 10 ETFs To Watch Friday

The Federal Reserve's decision to cut interest rates could positively impact stocks, consumers, and<a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/09/40928301/interest-rates-in-free-fall-what-it-means-for-mortgages-credit-cards-and-your-wallet-a"> several key sectors.</a>
Benzinga readers were recently asked to pick which Magnificent Seven stocks could benefit the most from the interest rate cut.
What Happened: The Federal Reserve's decision to<a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40926026/federal-reserve-delivers-bold-0-5-rate-cut-signals-further-easing-ahead"> cut interest rates</a> could benefit small-cap stocks the most, with loans cheaper for companies that need capital to continue growing.
Interest rate cuts could also benefit consumers as mortgage rates decline, auto loans get cheaper and credit card fees get lowered as a trickle-down impact from the Federal Reserve's decision.
Along with small cap stocks, the overall stock market could benefit including the <a href="https://www.benzinga.com/topic/magnificent-seven">Magnificent Seven stocks </a>that are among the most valuable and most-followed stocks in the U.S.
"Which Magnificent 7 stock will perform the best during the rate-cutting cycle," Benzinga recently asked readers.
Here are the results:
<ul>
<li>Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>): 24%</li>
<li>NVIDA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): 21%</li>
<li>Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>): 19%</li>
<li>Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>): 13%</li>
<li>Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>): 8%</li>
<li>Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): 8%</li>
<li>Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>): 8%</li>
</ul>
Tesla won the poll as the stock that will perform the best during the rate-cutting cycle with nearly a quarter of the vote. The stock could be popular given auto loans could come down in price and consumers having less concerns about higher prices all around could mean new auto purchases become more of a possibility.
Investors may also have picked Tesla in the poll as it is the Magnificent Seven stock with the worst year-to-date and one-year performance.
Here are the current performances of the Magnificent Seven stocks:
<ul>
<li>Tesla: Year-to-Date +2.5%, 1-Year +3.1%</li>
<li>Nvidia: Year-to-Date +157.6%, 1-Year +193.9%</li>
<li>Amazon: Year-to-Date +28.6%, 1-Year +46.9%</li>
<li>Apple: Year-to-Date +21.4%, 1-Year +28.0%</li>
<li>Microsoft: Year-to-Date +16.5%, 1-Year +36.0%</li>
<li>Meta: Year-to-Date +64.7%, 1-Year +89.6%</li>
<li>Alphabet: Year-to-Date +17.6%, 1-Year +23.9%</li>
</ul>
The Magnificent 7 stocks have mostly outperformed the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500 Index. The SPY is up 20.8% year-to-date and has climbed 32.1% over the last year, beating three Magnificent 7 stocks year-to-date and three stocks over the previous year.
Did You Know?
<ul>
<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent092524">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>
What's Next: With less than three months left in 2024, investment appetite for Magnificent Seven stocks could change, with investors looking for small-cap winners or stocks that could perform well after the 2024 election.
Benzinga readers recently voted Nvidia as <a href="https://www.benzinga.com/top-stories/24/08/40602271/ready-to-retire-on-a-single-magnificent-7-stock-poll-reveals-top-pick-and-its-not-apple" target="_blank" rel="noopener">their top Magnificent 7 stock </a>to retire on, with 33% of the vote. Apple and Microsoft ranked second and third, with 21% and 17%, respectively.
In August, Benzinga readers said the Magnificent Seven stock they were most <a href="https://www.benzinga.com/exclusives/24/08/40403222/exclusive-which-magnificent-7-stock-would-investors-put-1-000-in-today-44-of-benzinga-readers-pick-t">likely to invest $1,000</a> in was Nvidia at 44% of the vote, followed by Apple (13%) and Amazon (11%).
The different polls show varying interest in the Magnificent Seven stocks depending on the investment angle. Tesla did not rank in the top three of recent polls until investors were asked about the investment angle of rate cuts.
For investors looking to get exposure to all the Magnificent Seven stocks, there is also the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>), which holds the seven companies. The ETF is up 45% year-to-date and up over 57% in the past year.
The study was conducted by Benzinga Sept. 19 through Sept. 20, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 210 adults.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/general/politics/24/09/41025936/musk-zuckerberg-cook-cuban-or-thiel-whos-the-most-influential-tech-leader-in-2024-election-benzi">Musk, Zuckerberg, Cook, Cuban Or Thiel: Who&#8217;s The Most Influential Tech Leader In 2024 Election? Benzinga Readers Respond, And It&#8217;s Not Even Close</a></li>
</ul>
Photo: gguy/Shutterstock.com

Education

AAPL

GOOG

MSFT

NVDA

After Fed Rate Cuts, Is Tesla, Nvidia, Apple, Or Amazon The Best Investment? Poll Reveals Top Magnificent 7 Stock

The first trading session of September started with a widespread selloff across risk assets, as traders took a cautious approach ahead of what is historically a volatile <a href="https://www.benzinga.com/24/09/40676774/september-market-seasonality-why-this-month-is-historically-the-toughest-for-investors">month for global markets.</a>
At 1 p.m. in New York, the S&amp;P 500 had dropped 1.6%, while small-cap stocks nosedived 2.7%. The Magnificent Seven, tracked by the Roundhill Magnificent Seven ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NYSE">MAGS</a>), offered no safe haven, declining 2.3%.
The CBOE Volatility Index (VIX), often referred to as Wall Street&#8217;s &#8220;fear gauge,&#8221; surged by 20%, reflecting heightened anxiety among investors.
Tech stocks were hit hard, with the Nasdaq 100 down 2.5%, on track for its worst one-day drop since Aug. 1. 
Tuesday&#8217;s selloff was reminiscent of the market turmoil caused by the unwinding of the yen-dollar carry trade earlier in the summer. This time, the yen jumped 0.8% against the dollar after hawkish comments from <a href="https://www.benzinga.com/markets/asia/24/09/40692633/japanese-yen-rallies-on-bank-of-japans-rate-hike-pledge-us-manufacturing-activity-contraction">Bank of Japan Governor Kazuo Ueda overnight</a>.
Despite the yen&#8217;s strength, the U.S. dollar gained 0.2% against a basket of other currencies, buoyed by broader market movements.
On the economic front, <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40689835/us-manufacturing-activity-extends-contraction-for-fifth-month-demand-continues-to">U.S. manufacturing data for August showed a deeper-than-expected contraction</a>, with the employment index indicating mounting challenges ahead of a crucial jobs report due later in the week.
Treasury yields fell as the weak manufacturing data fueled speculation of potential interest rate cuts by the Federal Reserve. The yield on the two-year Treasury note, which is sensitive to policy changes, dipped 3 basis points, while the 10-year Treasury note yield dropped 7 basis points. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rose 1.2%.
In commodities, gold prices slipped 0.5%, while oil prices plunged more than 4%, marking the steepest one-day decline since October 2023. West Texas Intermediate (WTI) crude oil fell to levels not seen since early January 2024, driven by concerns over weaker demand and expectations of increased OPEC supply next month.
Cryptocurrency markets also faced pressure, with Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) down 2.5% as overall sentiment remained weak.
<h3 class="wp-block-heading">Tuesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day change (%)</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>41,057.56</td>
<td>-1.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,557.61</td>
<td>-1.6%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,102.46</td>
<td>-2.4%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,160.05</td>
<td>-2.7%</td>
</tr>
<tr>
<td>CBOE VIX</td>
<td>18.54</td>
<td>19.2%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:15 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent090324&amp;t=be2bearmibe3na1">Benzinga Pro </a>data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.5% lower to $555.15.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 1.1% to $411.80.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) tumbled 2.4% to $45.16.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) sunk 2.6% to $214.30.</li>
<li>The Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) outperformed, up by 1%, while the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) tumbled 3.5%. </li>
</ul>
<h3 class="wp-block-heading">Monday&#8217;s Stock Movers</h3>
<ul>
<li>Among mega-cap stocks, Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) plummeted 7.6%, marking the worst one-day drop since April.</li>
<li>Other major chipmakers also tanked including Marvell Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), down 7.3%, Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), down 6.5%, Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), down 6%, and Taiwan Semiconductor Manufacturing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), down 5.7%. </li>
<li>Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) fell 7.5% amid news that the stock might be removed from the Dow Jones index.</li>
<li>Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) tumbled almost 8% after Wells Fargo downgraded the stock to an Underweight rating and slashed its price target.</li>
</ul>
Read Next: <a href="https://www.benzinga.com/trading-ideas/technicals/24/09/40691352/stock-of-the-day-berkshire-hathaway-trades-above-usual-range-time-to-sell-the-warren-buf">Stock Of The Day: Berkshire Hathaway Trades Above Usual Range — Time To Sell The Warren Buffett Stock?</a>
Bear market illustration generated using artificial intelligence via Dall-E.

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Bonds

Markets

Movers

$BTC

SPDR Dow Jones Industrial Average ETF Trust

MRVL

iShares Trust Barclays 20+ Year Treasury Bond Fund

Wall Street Tumbles, Yen Surges, Oil Sinks Below $70, VIX Spikes As Traders Brace For Volatile Month: What's Driving Markets Tuesday?

The U.S. dollar strengthened across the board on Friday after newly released economic data suggested the Federal Reserve might not rush to <a href="https://www.benzinga.com/news/large-cap/24/08/40639345/traders-scale-back-bets-on-50-basis-point-september-rate-cut-ahead-of-fridays-key-fed-inflation-ga">implement large rate cuts.</a>
Meanwhile, Wall Street took comfort in data highlighting the ongoing strength of U.S. consumers, who continue to be a vital driver of economic growth.
What Happened: The Federal Reserve&#8217;s preferred inflation gauge, the Personal Consumption Expenditure (PCE) Price Index, halted its downward trend in July, though it remained below economists&#8217; expectations.
The index held steady at a 2.5% year-over-year rate, the same as in June, slightly under the anticipated increase to 2.6%.
When volatile items like food and energy were excluded, the core PCE Price Index also remained unchanged at 2.6% on an annual basis, missing forecasts of a rise to 2.7%.
In addition to the inflation data, stronger-than-expected reports on personal income and spending further underscored the economy&#8217;s robustness. 
Personal income rose by $75.1 billion, or 0.3% month-over-month in July, surpassing both the previous and expected increases of 0.2%.
On Thursday, government data revealed the <a href="https://www.benzinga.com/markets/equities/24/08/40627044/us-dollar-oil-prices-tech-stocks-rise-as-gdp-roars-by-3-in-q2-bonds-yen-slip-as-bets-for-large-r">U.S. economy expanded at an upwardly revised 3%</a> annualized rate in the second quarter, a significant acceleration from the 1.4% growth in the first quarter. This revision was largely driven by a surge in consumer spending, which nearly doubled to 2.9%, up from 1.5% in the first quarter.
Why It Matters: The softer-than-expected PCE report suggests the Federal Reserve is likely to proceed with gradual rate cuts, which market participants have already largely priced in.
The latest data also signals less urgency for outsized or rapid cuts, as the underlying strength of the economy mitigates recession concerns that had emerged earlier in the month.
As a result, expectations for a 50-basis-point rate cut in September have diminished over the past two sessions, with market-implied odds dropping to 30%, according to the CME FedWatch tool.
<h1 class="wp-block-heading">Market Reactions</h1>
<ul>
<li>The Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), which tracks the U.S. dollar against a basket of currencies, gained 0.2% minutes after the market opened Friday.</li>
<li>The stronger dollar put pressure on gold, as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), which fell 0.2%.</li>
<li>Small-cap stocks, tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), were 0.4% higher.</li>
<li>The tech-heavy Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), rallied 0.9%.</li>
<li>Sector-wise, the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, climbing 0.8%.</li>
<li>The Magnificent Seven stocks, tracked by the Roundhill Magnificent Seven ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NYSE">MAGS</a>), rose 0.4%.</li>
<li>Semiconductors rallied substantially, with the iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) up 2.2%, buoyed by positive earnings report from MongoDB Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDB#NASDAQ">MDB</a>) and Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) </li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40638519/fitch-reaffirms-us-aa-credit-rating-warns-of-growing-debt-burden-tax-cuts-will-be-e">Fitch Reaffirms US &#8216;AA+&#8217; Credit Rating, Warns Of Growing Debt Burden: &#8216;Tax Cuts Will Be Extended Under Either Trump Or Harris&#8217;</a></li>
</ul>
Don&#8217;t miss the opportunity to dominate in a volatile market at the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference</a> on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile. 
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!
Photo: Shutterstock

Mid Cap

Forex

PowerShares DB US Dollar Index Bullish Fund

Dollar Surges As Doubts Over Aggressive Rate Cuts Grow, Wall Street Climbs On Consumer Strength: 7 ETFs React To Fed's Inflation Data

Investors have many options when it comes to <a href="https://www.benzinga.com/topic/retirement">investing for retirement.</a>
Among the available strategies are to invest in index funds, mutual funds, ETFs or choose individual stocks. Benzinga recently asked which of the Magnificent 7 stocks was the best option for retirement.
What Happened: The <a href="https://www.benzinga.com/topic/magnificent-seven">Magnificent 7 stocks</a>, a select group of highly valuable and widely recognized investments, are often associated with high-growth financials and leading companies in the technology sector.
The Magnificent 7 stocks are Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
"If you had to invest your entire retirement account into just one Magnificent 7 stock, which would you choose?" Benzinga asked.
Here are the results:
<ul>
<li>Nvidia: 33%</li>
<li>Apple: 21%</li>
<li>Microsoft: 17%</li>
<li>Amazon: 14%</li>
<li>Tesla: 7%</li>
<li>Alphabet: 4%</li>
<li>Meta Platforms: 4%</li>
</ul>
The results are hardly surprising given Nvidia's status as one of the most talked-about growth stories in recent years, with the stock significantly outperforming over the past year.
Apple ranked second in the poll and comes as the company is among the top performers over the last five years and has a loyal fan base.
Read Also: <a href="https://www.benzinga.com/top-stories/24/08/40531771/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet">Benzinga&#8217;s &#8216;Stock Whisper&#8217; Index: 5 Stocks Investors Secretly Monitor But Don&#8217;t Talk About Yet</a>
Why It's Important: The Magnificent 7 stocks have outperformed the broader stock market over the last five years and 10 years based on the returns compared to the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500.
Here's a look at the five-year and 10-year returns of the Magnificent 7 stocks:
<ul>
<li>Nvidia: 5-Year +2,962%, 10-Year +25,603%</li>
<li>Apple: 5-Year +337%, 10-Year +822%</li>
<li>Microsoft: 5-Year +200%, 10-Year +802%</li>
<li>Amazon: 5-Year +95%, 10-Year +900%</li>
<li>Tesla: 5-Year +1,291%, 10-Year +1,031%</li>
<li>Alphabet: 5-Year +177%, 10-Year +451%</li>
<li>Meta: 5-Year +180%, 10-Year +572%</li>
</ul>
For comparison, the SPDR S&amp;P 500 ETF is up 92% over the last five years and up 179% over the last 10 years. Each of the Magnificent 7 stocks beats the ETF for both time periods, with many more than doubling its returns.
Nvidia recently topped a poll on which Magnificent 7 stock Benzinga readers<a href="https://www.benzinga.com/exclusives/24/08/40403222/exclusive-which-magnificent-7-stock-would-investors-put-1-000-in-today-44-of-benzinga-readers-pick-t"> would invest $1,000 </a>in today. It was Amazon.com that topped Nvidia in a poll on which Magnificent 7 stock <a href="https://www.benzinga.com/exclusives/24/08/40285533/exclusive-which-magnificent-7-stock-could-best-weather-a-recession-benzinga-readers-split-on-pick-wi">could best weather a recession. </a>
For investors looking to get exposure to all the Magnificent 7 stocks, there is also the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>), which holds the seven companies.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/08/40129993/poll-finds-over-70-believe-2024-stock-market-peak-not-yet-reached">Poll Finds Over 70% Believe 2024 Stock Market Peak Not Yet Reached</a></li>
</ul>
The study was conducted by Benzinga on Aug. 26 and Aug. 27, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 112 adults.
Photo: Shutterstock

Exclusives

Trading Ideas

Ready To Retire On A Single Magnificent 7 Stock? Poll Reveals Top Pick —And It's Not Apple

Over the past year, investors have often turned to the market leaders, which among large cap companies are often the <a href="https://www.benzinga.com/topic/magnificent-seven">Magnificent 7 stocks.</a>
A new Benzinga poll looks at which of the seven stocks are the most popular with investors today.
What Happened: Six of the seven Magnificent 7 stocks are up year-to-date in 2024 and several of the names are believed to be companies that could be<a href="https://www.benzinga.com/exclusives/24/08/40285533/exclusive-which-magnificent-7-stock-could-best-weather-a-recession-benzinga-readers-split-on-pick-wi"> resilient against a potential recession.</a>
Benzinga readers were asked which of the seven stocks they would invest in today.
"If you had $1,000 to invest in a Magnificent 7 stock right now, which one would you choose?" Benzinga asked.
The results were:
NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): 44%
Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>): 13%
Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>): 11%
Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>): 10%
Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>): 9%
Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): 8%
Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>): 6%
The results of the poll showed a clear preference for Nvidia as the top place to invest $1,000 in today. The race for second place was much closer with Apple ranking slightly ahead of Amazon and Microsoft.
Potentially surprising to some, Alphabet ranked last in the poll with 6% of the vote, which could be due to recent concerns of a company breakup with an ongoing battle with <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40378964/google-stock-swings-on-doj-investigation-analyst-says-googl-is-worth-more-in-pieces">the U.S. Department of Justice.</a>
Did You Know?
<ul>
<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent081524">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>
Why It's Important: The latest Benzinga poll shows Nvidia as a winner once again. The company was picked as the top Magnificent 7 stock to weather a recession, tying with Amazon for the victory. Both Nvidia and Amazon received 27% in the previous Benzinga poll.
Benzinga readers picked Meta, Alphabet and Tesla as the worst stocks to weather a recession. All three stocks also ranked last in this poll, suggesting that investors are not in favor of these three large-cap stocks during the current economic climate.
When selecting where to put $1,000 in today, investors could also be looking at past performance. Here's a look at the year-to-date and five-year performances of the Magnificent 7 stocks as of Aug. 15:
<ul>
<li>Alphabet: +15.3% YTD, +176.6% 5-Year</li>
<li>Amazon: +16.0% YTD, +98.4% 5-Year</li>
<li>Apple: +13.0% YTD, +342.8% 5-Year</li>
<li>Meta: +52.1% YTD, +194.8% 5-Year</li>
<li>Microsoft: +11.4% YTD, +212.7% 5-Year</li>
<li>Nvidia: +146.6% YTD, +3,154.5% 5-Year</li>
<li>Tesla: -14.0% YTD, +1,359.8% 5-Year</li>
</ul>
A look at the performance shows that readers picked the top-performing Magnificent 7 stock of the past five years to put their $1,000 investment in. Tesla, which has the second-best 5-year performance ranked near the bottom in the new poll, suggesting investors don't see the same upside ahead.
For investors looking for exposure to the Magnificent 7 stocks without having to choose one or two winners, there is the&nbsp;Roundhill Magnificent Seven ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>), which holds all seven stocks.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/top-stories/24/08/40284758/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet">Benzinga&#8217;s &#8216;Stock Whisper&#8217; Index: 5 Stocks Investors Secretly Monitor But Don&#8217;t Talk About Yet</a></li>
</ul>
The study was conducted by Benzinga on Aug. 13 and Aug. 14, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 174 adults.
Photo: Shutterstock

EXCLUSIVE: Which Magnificent 7 Stock Would Investors Put $1,000 In Today? 44% Of Benzinga Readers Pick This Company

A large drop in the market on Monday sparked fears of a recession. While the stock market has recovered in the days since, investors are factoring concerns of a recession and high valuations for stocks including the <a href="https://www.benzinga.com/topic/magnificent-seven">Magnificent 7 members.</a>
What Happened: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which follows the S&amp;P 500 Index, and the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which tracks the Nasdaq 100 <a href="https://www.benzinga.com/news/large-cap/24/08/40166207/how-to-navigate-market-volatility-5-etfs-that-strengthen-your-portfolio-during-stock-turmoil">had large drops</a> of 3% due to economic uncertainties and global fears.
With many stocks down on Monday, the Magnificent 7 stocks were also hit and some investors chose to buy the dip on these stocks that have typically outperformed the broad market.
Benzinga asked readers their opinion on the outlook for the Magnificent 7 stocks.
"Which of the following Magnificent 7 stocks do you believe will be best able to weather a recession?" Benzinga asked.
Here are the results:
Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>): 27%
NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): 27%
Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>): 22%
Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>): 8%
Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>): 6%
Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>): 6%
Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): 4%
The poll found readers think Amazon and Nvidia are best positioned to weather a potential recession. Amazon is a leader in e-commerce and has its AWS cloud business that has increased revenue and earnings. Nvidia has been a top-performing stock in recent years and is viewed as a leader in artificial intelligence by many.
Ranking close behind the winners was Microsoft, a company that operates in cloud, search, video games, business software and more segments.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/08/40259139/tech-stocks-rally-after-5-day-slump-as-recession-panic-eases-nasdaq-100-movers-to-watch-thursday">Tech Stocks Rally After 5-Day Slump As Recession Panic Eases: Nasdaq 100 Movers To Watch Thursday</a>
Why It's Important: While fears of a recession have shrunk in the days since Monday, investors should be aware that August and September are<a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/07/40025773/bad-news-ahead-for-investors-august-september-are-worst-two-months-over-past-20-years-"> traditionally weak months </a>for the stock market.
Investors could be looking for hedges against market underperformance or for the coming years of growth from trends such as artificial intelligence.
Here's a look at the year-to-date, one-year and five-year performances of the Magnificent 7 stocks as of Aug. 8:
<ul>
<li>Apple: +11.0% YTD, +19.5% 1-Year, +320.2% 5-Year</li>
<li>Microsoft: +7.7% YTD, +22.7% 1-Year, +199.3% 5-Year</li>
<li>Alphabet: +16.9% YTD, +24.1% 1-Year, +177.7% 5-Year</li>
<li>Amazon: +9.4% YTD, +16.9% 1-Year, +85.4% 5-Year</li>
<li>Nvidia: +112.4% YTD, +131.6% 1-Year, +2,557.9% 5-Year</li>
<li>Meta: +42.9% YTD, +59.7% 1-Year, +165.9% 5-Year</li>
<li>Tesla: -19.6% YTD, -20.5% 1-Year, +1,184.4% 5-Year</li>
</ul>
For comparison, the SPDR S&amp;P 500 ETF Trust is up 11.5% year-to-date, up 15.1% over the last year and up 80.5% over the past five years. Only three of the Magnificent 7 stocks are ahead of the SPY year-to-date.
Looking longer-term, six of the seven Magnificent 7 stocks have outperformed the SPY over the past year and all seven have outperformed the SPY over the past five years.
Benzinga <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/08/40129993/poll-finds-over-70-believe-2024-stock-market-peak-not-yet-reached">recently asked readers</a> if they thought markets would hit new highs in 2024. The poll found that 72% of readers don't think the market has peaked for 2024, suggesting more gains coming in the final four months of the year.
For investors looking for exposure to the Magnificent 7 stocks without having to choose one or two winners, there is the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>), which holds all seven stocks.
The study was conducted by Benzinga on Aug. 6 and Aug. 7, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 113 adults.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/top-stories/24/08/40252739/fed-rate-cuts-could-avert-recession-say-75-in-benzinga-poll-as-majority-sees-market-dip-as-temporary">Fed Rate Cuts Could Avert Recession, Say 75% In Benzinga Poll: Majority See Market Dip As Temporary</a></li>
</ul>
Photo: Shutterstock

EXCLUSIVE: Which Magnificent 7 Stock Could Best Weather A Recession? Benzinga Readers Split On Pick, With A Tie For The Win

Mega-cap stocks, led by the Magnificent Seven companies, continue to be at the forefront, whether it is a rally or a pullback, underlining their undue influence on the market. Against this backdrop, Morgan Stanley analysts led by Erik Woodring on Wednesday delved into the damage the sell-off has inflicted on the mega-cap space and the outlook for these stocks.
Valuation Not So Depressed? The Magnificent Seven valuations are now 30% off the trailing five-year peak but still 50% above the trailing five-year trough, said Morgan Stanley analysts in the note. &#8220;This compares to the NASDAQ 100 that is 20% off its T5Y valuation high and 37% above its T5Y valuation low, and the Russell 2000 that is 56% off its T5Y valuation highs but 50% above its T5Y valuation low,&#8221; the analysts said.
The group comprises seven of the biggest mega-cap stocks, belonging to the IT and communication services sectors, as well as the electric-vehicle industry. The constituents are:
<ul>
<li>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</li>
<li>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</li>
<li>Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)</li>
<li>Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)</li>
<li>Alphabet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)</li>
<li>Amazon, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</li>
<li>Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</li>
</ul>
See Also:<a href="https://www.benzinga.com/money/best-growth-stocks"> Best Growth Stocks Right Now</a>
Attractive On Future Growth: While adjusting for future earnings per share growth, the group traded at a 40% discount to the trailing five-year price-earnings growth ratio, said Woodring. This, according to the analyst, is the critical distinction in a soft-landing scenario and supports the case for the Magnificent Seven stocks outperforming small-caps.
Following the recent stock market sell-off, the Magnificent Seven stocks were down 9% month-to-date through Aug. 5, on average, the analyst noted. This compared to the S&amp;P 500&#8217;s 6% decline and the Nasdaq&#8217;s 8% decline, he said. 
The analyst noted that Tesla and Nvidia were the relative underperformers in the group, flat for the month-to-date period. 
&#8220;As a result, we&#8217;d conclude that while Mag 7 valuations still face significant downside valuation risk in a black swan or recession scenario, current Mag 7 valuations relative to future growth prospects are attractive after the recent drawdown,&#8221; Morgan Stanley said.
The view comes amid expectations that the mega-cap momentum will moderate, potentially giving the lead to small-caps, as the <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40264176/0-5-or-0-25-federal-reserve-cuts-in-september-seem-a-done-deal-but-bond-traders-and-crypto">Federal Reserve is widely expected to cut interest rates,</a> beginning in September. Morgan Stanley&#8217;s analysis suggests the Mag 7 rally may have further leg as long as the economy averts a recession or hard landing.
The Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) climbed 0.64% to $450.94 in premarket trading Friday and the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) rose 1.35% to $420.70, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data. </a>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) gained 0.72% to $208.38.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/08/40188627/nvidia-leads-chip-stocks-higher-after-3-session-sell-off-whats-going-on">Nvidia Leads Chip Stocks Higher After 3-Session Sell-Off: What&#8217;s Going On?</a></li>
</ul>
Photo via Shutterstock

News

General

As Nvidia Leads Magnificent 7 Volatility, Analyst Says These Mega-Caps Are Poised To Outperform Small-Caps — But There's A Catch

What initially seemed like a cause for celebration after Jerome Powell hinted that a September interest rate cut &#8220;could be on the table&#8221; quickly turned into another selloff for tech stocks the day after the July Federal <a href="https://www.benzinga.com/news/large-cap/24/07/40080168/jerome-powell-finally-concedes-rate-cut-could-be-on-the-table-in-september-stocks-gold-rise-dollar">Open Market Committee meeting.</a>
Investors reevaluated their positions in tech giants in light of disappointing economic data released Thursday and the latest earnings reports, shifting toward a more risk-averse approach.
The Nasdaq 100, as tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), tumbled 2.7% after a 3% rally on Wednesday. 
The Magnificent Seven tech stocks, monitored through the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>), declined by 1.9%. Chipmakers faced another significant blow, with the iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) plummeting over 7%, wiping out the gains made on Wednesday.
Some investors, relying on fundamentals, see potential entry opportunities during this selloff.
<h3 class="wp-block-heading">Ed Yardeni&#8217;s Insights On Tech Stock Prospects</h3>
Veteran Wall Street investor Ed Yardeni, chief investment strategist and president at Yardeni Research, said that despite investor disappointment in Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) and Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) earnings, there were no indications that artificial intelligence would fail to live up to expectations.
According to Yardeni, their capital spending plans—higher than anticipated—indicate a strong commitment to developing infrastructure to support AI. 
&#8220;If that's the case, much of the selloff may be in the rearview mirror,&#8221; Yardeni wrote. 
Despite the selloff, the MegaCap-8 stocks (excluding Tesla) are still enjoying &#8220;a banner year:&#8221;
<ul>
<li>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): up 122% year-to-date through 1:30 p.m. ET Thursday. </li>
<li>Meta: up 41%</li>
<li>Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>): up 29%</li>
<li>Alphabet: up 22.5%</li>
<li>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>): up 21.5%</li>
<li>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>): up 16.6%</li>
<li>Microsoft Corp.: up 11.2%</li>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>): down 12%</li>
</ul>
Some stocks within this group still offer attractive valuations, according to Yardeni. 
For instance, he said Nvidia&#8217;s forward price-to-earnings (P/E) ratio of 32.1 is considered &#8220;extremely low&#8221; relative to its expected forward earnings growth of 60.9%. Similarly, Meta and Netflix are not fully recognized for their strong earnings growth, which almost matches their respective forward P/E ratios, he said. 
&#8220;Conversely, some forward multiples are harder to justify,&#8221; Yardeni said. 
Tesla&#8217;s forward P/E of nearly 80, with forward earnings growth of less than 6%, suggests that investors are betting heavily on the company&#8217;s potential to deliver autonomous vehicles and an electric semi-trailer truck. Both Apple and Microsoft&#8217;s forward multiples appear somewhat high, with a lot riding on Apple&#8217;s ability to launch its AI offering, Apple Intelligence, and Microsoft&#8217;s expectation that its significant quarterly investment in AI infrastructure will yield returns.
Here&#8217;s a fundamental snapshot of the MegaCap-8 stocks in terms of their forward multiples and expected earnings growth:
<ul>
<li>Tesla: 79.0 forward P/E, 5.8% forward earnings growth</li>
<li>Amazon: 34.2 forward P/E, 36.9% forward earnings growth</li>
<li>Nvidia: 32.1 forward P/E, 60.9% forward earnings growth</li>
<li>Microsoft: 31.4 forward P/E, 13% forward earnings growth</li>
<li>Apple: 30.3 forward P/E, 10.4% forward earnings growth</li>
<li>Netflix: 29.1 forward P/E, 32.4% forward earnings growth</li>
<li>Meta: 21.1 forward P/E, 22% forward earnings growth</li>
<li>Alphabet: 20.6 forward P/E, 20.1% forward earnings growth</li>
</ul>
Read Next:
• <a href="https://www.benzinga.com/markets/asia/24/08/40107045/middle-east-war-jitters-weigh-on-markets-us-treasuries-hit-5-month-highs-on-worsening-risk-sentiment">Middle East War Jitters Weigh On Markets: US Treasuries Hit 5-Month Highs On Worsening Risk Sentiment, Disappointing Data</a>
Photo via Pixabay.

Analyst Color

NFLX

Wall Street Analyst Predicts End To Tech Rout: 'Much Of The Selloff May Be In The Rearview Mirror'

The elite group known as the Magnificent Seven faces a decisive market test as four mega-cap tech giants report their latest <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/40006542/apple-amazon-microsoft-meta-lead-the-charge-as-investors-bank-on-tech-cheer-for-ral">quarterly earnings this week. </a>
Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) will kick things off on Tuesday, reporting its fiscal fourth-quarter 2024 earnings after market close.
Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) will take the spotlight after the market closes on Wednesday, potentially making for a volatile day as traders assess interest rate moves following the Federal Reserve policy meeting and Fed Chair Jerome Powell&#8216;s press conference.
Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) will both report their fiscal second-quarter and third-quarter earnings, respectively, on Thursday, after market close.
Collectively, these four giants have a market valuation of nearly $10 trillion, highlighting the significant impact these earnings are expected to have on the markets.
Last week, the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) suffered its worst day since the fund&#8217;s inception, tumbling over 6% on Wednesday. On the same day, both the S&amp;P 500 and the Nasdaq 100 indices had their worst session since late 2022. Magnificent Seven also marked their third consecutive week of declines. 
Also Read: <a href="https://www.benzinga.com/news/earnings/24/07/40018739/apple-analyst-turns-focus-to-apple-intelligence-chinese-market-share-ahead-of-q3-earnings">Apple Analyst Turns Focus To &#8216;Apple Intelligence,&#8217; Chinese Market Share Ahead Of Q3 Earnings</a>
<h3 class="wp-block-heading">What Analysts Expect</h3>
&#8220;Much depends on investor sentiment,&#8221; said David Morrison, senior market analyst at Trade Nation.
According to Morrison, the key questions to address are whether the tech sector has pulled back enough for investors to buy again, regardless of earnings. Additionally, if there are further disappointments, will it trigger another wave of selling, and will funds then shift towards smaller-cap stocks?
&#8220;There's a lot to consider, and that's before factoring in monetary policy meetings from the Federal Reserve, Bank of Japan, and Bank of England, along with the U.S. Non-Farm Payrolls on Friday. This may prove to be a decisive week ahead of the summer's main holiday month,&#8221; he added.
<h3 class="wp-block-heading">Goldman Sachs Predicts Positive Amazon Performance Ahead of Earnings</h3>
Goldman Sachs equity analyst Eric Sheridan highlighted three key debates for investors ahead of Amazon&#8217;s earnings this week.
First, he pointed to the health of the consumer, with Amazon&#8217;s eCommerce business remaining strong in Q2 despite some weakness in the UK and Germany.
Second, Sheridan observed Amazon&#8217;s potential to boost operating income margins, with expected outperformance driven by higher retail margins, increased advertising contributions, and robust AWS profitability. 
Third, he addressed the growth trajectory of AWS revenue, anticipating a reacceleration in 2024 as optimization and workload migration challenges turn into tailwinds, alongside rising AI workloads.
Goldman Sachs raised Amazon&#8217;s 12-month price target from $225 to $250, reiterating a Buy rating.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Company</th>
<th>Fiscal Quarter</th>
<th>EPS Estimate</th>
<th>Revenue Estimate</th>
</tr>
</thead>
<tbody>
<tr>
<td>Microsoft Corp.</td>
<td>Q4 2024</td>
<td>$2.93</td>
<td>$64.36B</td>
</tr>
<tr>
<td>Meta Platforms Inc.</td>
<td>Q2 2024</td>
<td>$4.72</td>
<td>$38.3B</td>
</tr>
<tr>
<td>Amazon.com Inc.</td>
<td>Q2 2024</td>
<td>$1.03</td>
<td>$148.6B</td>
</tr>
<tr>
<td>Apple Inc.</td>
<td>Q3 2024</td>
<td>$1.34</td>
<td>$84.4B</td>
</tr>
</tbody>
</table>
</figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39899280/microsoft-stock-has-further-room-to-run-says-analyst-as-software-giant-remains-on-t">Microsoft Stock Has Further Room To Run, Says Analyst, As Software Giant Remains On Track To Hit $200B Cloud Revenue In 2 Years</a></li>
</ul>
Photo: Shutterstock

Magnificent 7 Face Pivotal Market Moment As 4 Mega Tech Giants Report Earnings This Week

Technology stocks endured their steepest decline since late 2022 on Wednesday, with nearly 75% of Nasdaq 100 constituents <a href="https://www.benzinga.com/markets">slipping into the red.</a>
The Nasdaq 100 — tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) — dropped 3.6%, marking its fifth decline in six sessions and the sharpest one-day drop since October 2022.
The tech-heavy index fell below its 50-day moving average for the first time since early May. It mostly stayed above this key support level since late October 2023, barring a brief two-week period between April and May.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39939101/gdp-q2-preview-5-etfs-to-monitor-thursday-as-economic-data-unfolds">GDP Q2 Preview &#8211; 5 ETFs To Monitor Thursday As Economic Data Unfolds</a>
Shares of Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), the parent company of Google, plummeted 4.9% due to higher-than-expected AI spending and disappointing YouTube ad revenue. 
Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) shares tumbled 12% following a 7% drop in auto revenue, a profit miss, and delays in the Robotaxi project. 
Chip stocks also suffered, with Nvidia falling 6.2%, Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) losing 7.6%, and Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) sinking 8.2%.
The Magnificent Seven, tracked by the Roundhill Magnificent Seven ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NYSE">MAGS</a>), plunged 5.8%. This marks the worst daily performance since the fund&#8217;s inception. Collectively, the seven tech giants wiped out nearly $700 billion in market value in a single session, with Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) alone shedding $180 billion.
Chart: Nasdaq 100 Falls Below 50-Day Moving Average, QQQ Marks Worst Day Since October 2022
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="501" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160923/image-41-1024x501.png" alt="" class="wp-image-455165" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160923/image-41-1024x501.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160923/image-41-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160923/image-41-768x376.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160923/image-41-1536x751.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160923/image-41.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="455" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160756/image-40-1024x455.png" alt="" class="wp-image-455159" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160756/image-40-1024x455.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160756/image-40-300x133.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160756/image-40-768x342.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160756/image-40-1536x683.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/24160756/image-40.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
The key question now is whether the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39856707/top-analyst-remains-very-bullish-about-3-to-5-year-bull-market-despite-tech-induced">tech-led bull market is over</a> or the <a href="https://www.benzinga.com/top-stories/24/07/39601364/ai-surge-sparks-fears-of-dot-com-like-bubble-burst">AI bubble is bursting</a>. <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39797464/small-caps-are-having-a-moment-russell-2000-notches-best-5-day-rally-in-over-4-year">Investors have also been rotating</a> out of tech since July 11, according to veteran Wall Street investor Ed Yardeni.
The lower-than-expected CPI in June prompted investors to pile into interest-rate-sensitive stocks.
&#8220;We agree with that expectation,&#8221; Yardeni said, &#8220;but we also think it could be a one-and-done rate cut for 2024 because the economy remains resilient.&#8221;
&#8220;For now, we believe that the stock market was overbought and is experiencing a minor selloff,&#8221; he added.
On July 16, the S&amp;P 500 was 15% above its 200-day moving average. Historically, such levels have often preceded 10%-20% corrections or more significant declines during recessions. 
This time, the selloff doesn&#8217;t seem linked to widespread recession fears, Yardeni says. After all, the Fed is poised to <a href="https://www.benzinga.com/markets/24/07/39849593/fed-rate-cut-expectations-drop-mortgage-rates-to-4-month-lows-surge-in-new-applications-refinance-de">potentially lower interest rates</a> in September.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39938672/us-stocks-tumble-magnificent-7-wipe-out-570-billion-as-mega-tech-earnings-disappoint-vix-s">US Stocks Tumble, Magnificent 7 Wipe Out $570 Billion As Mega-Tech Earnings Disappoint, VIX Spikes: What&#8217;s Driving Markets Wednesday?</a></li>
</ul>

AVGO

Nasdaq 100 Notches Worst Session Since Late 2022, Falls Below Key 50-Day Moving Average: Is The AI Tech Bubble Bursting?

Wall Street experienced a turbulent session on Wednesday, with the S&amp;P 500 index heading toward its worst performance in over a year and the tech-focused Nasdaq 100 eyeing its fifth decline in <a href="https://www.benzinga.com/markets">the last six sessions.</a>
The Magnificent Seven group — Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), NVIDIA Corp., Alphabet Inc., Amazon Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Tesla, Inc. — wiped out over $570 billion in their combined market valuation by midday trading in New York. The Roundhill Magnificent Seven ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NYSE">MAGS</a>) fell 4.9%, marking the worst daily performance since the fund&#8217;s inception last year.
Tesla shares plummeted over 11% after missing earnings expectations, with revenue dropping 7% year-over-year to $19.9 billion. This marks its second consecutive quarter of year-over-year sales declines and the first sequential decline in quarterly sales volume.
Despite posting stronger-than-expected numbers, Alphabet also saw a significant drop, falling 5%, weighed down by its YouTube advertising revenue, which failed to meet analyst expectations.
The Nasdaq 100 fell 3%, eyeing a similar decline to the one witnessed a week ago. The drop in tech companies also impacted the chipmaker industry, which heavily depends on AI-related investments from mega-cap tech giants. The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) fell 3.3%, approaching its lowest close since early June.
The CBOE Volatility Index or VIX, commonly referred to as the market fear index, rallied 16% to 17 points.
On the macro front, flash PMI surveys revealed the strongest pace of growth for the services sector in 28 months, while manufacturing activity <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39934981/us-services-activity-hits-28-month-peak-price-pressures-continue-to-ease-economist-">returned to contraction in July.</a>
Treasury yields fell, sending a trade-weighted U.S. dollar gauge down 0.3%. Notably, the dollar fell 1.4% against the Japanese yen, eyeing levels last seen in early May. 
Gold showed its resilience against market turbulence, rising 0.6%. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 0.4%. 
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,242.07</td>
<td>-0.3%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,045.39</td>
<td>-0.8%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,461.51</td>
<td>-1.7%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,171.24</td>
<td>-3.0%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:05 p.m. ET</figcaption></figure>
According to <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent072424&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.8% down to $543.94.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;edged down 0.8% to $400.13.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(ARCA:&nbsp;<a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a><a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a>QQQ) fell 3% to $466.46.</li>
<li>Sector-wise, the Utilities Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)&nbsp;outperformed, up by 1.3%, while the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) and the Consumer Discretionary Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) lagged, both down 3.2%.</li>
</ul>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
Stocks moving on earnings were: 
<ul>
<li>Visa Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>), down over 4%.</li>
<li>Texas Instruments Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>) up 0.6%.</li>
<li>Chubb Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>), down 0.4%. </li>
<li>Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>), up 2.3%. </li>
<li>Thermo Fisher Scientific Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TMO#NYSE">TMO</a>) up 3.2%.</li>
<li>AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) up 5.4%.</li>
<li>Boston Scientific Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BSX#NYSE">BSX</a>) down 2%. </li>
<li>Fiserv Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FI#NYSE">FI</a>) up 2.2%. </li>
<li>CME Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CME#NASDAQ">CME</a>) up 0.8%, </li>
<li>General Dynamics Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) down 4%. </li>
<li>Roper Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROP#NASDAQ">ROP</a>) down 9%. </li>
<li>Old Dominion Freight Line, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODFL#NASDAQ">ODFL</a>) up 2.9%. </li>
<li>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) up 0.7%. </li>
<li>Vertiv Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VRT#NYSE">VRT</a>) down 9%.</li>
<li>Check Point Software Technologies Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHKP#NASDAQ">CHKP</a>) up 7%. </li>
</ul>
Those reporting after the close include: 
<ul>
<li>International Business Machines Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>)</li>
<li>ServiceNow, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) ORLY) </li>
<li>KLA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>)</li>
<li>Chipotle Mexican Grill, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>)</li>
<li>Republic Services Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSG#NYSE">RSG</a>)</li>
<li>Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>)</li>
<li>Edwards Lifesciences Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EW#NYSE">EW</a>)</li>
<li>Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>)</li>
<li>Knight-Swift Transportation Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KNX#NYSE">KNX</a>)</li>
<li>Las Vegas Sands Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LVS#NYSE">LVS</a>)</li>
<li>Meritage Homes Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>)</li>
<li>Whirlpool Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WHR#NYSE">WHR</a>)</li>
<li>O&#8217;Reilly Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORLY#NASDAQ">ORLY</a>).</li>
</ul>
Read now:
<ul>
<li><a href="https://www.benzinga.com/news/large-cap/24/07/39931211/mortgage-rates-hit-lowest-point-since-february-as-investors-anticipate-fed-rate-cuts">Mortgage Rates Hit Lowest Point Since February As Investors Anticipate Fed Rate Cuts</a></li>
</ul>
Photo via Shutterstock.

Small Cap

CHKP

KLAC

ODFL

ORLY

US Stocks Tumble, Magnificent 7 Wipe Out $570 Billion As Mega-Tech Earnings Disappoint, VIX Spikes: What's Driving Markets Wednesday?

Despite a market rebalancing away from large tech companies, reflected by an over 10% correction in the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) in the past two weeks, the so-called &#8220;Magnificent Seven&#8221; companies still comprise an <a href="https://www.benzinga.com/topic/s-p-500">outsized portion of the S&amp;P 500</a>.
The Data: The Magnificent 7 comprises seven of the largest U.S. technology companies weighted heavily in the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
<ul>
<li>Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), 6.93% of the index.</li>
<li>Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), 6.66% of the index.</li>
<li>NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), 5.95% of the index.</li>
<li>Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/G#NASDAQ">G</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), 4.45% of the index.</li>
<li>Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), 3.94% of the index.</li>
<li>Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), 2.45% of the index.</li>
<li>Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), 1.4% of the index. (Figures taken at the time of writing)</li>
</ul>
All components have been in the red over the past 10 market sessions at a higher magnitude than the nearly 3% drop seen in the overall S&amp;P 500. The small-cap Russell 2000 index is up nearly 10% in that period.
Still, the Magnificent 7 collectively comprise around 32% of the S&amp;P 500.
Why it Matters: The data reflects a persistent market bullishness in artificial intelligence and Big Tech. 
The current correction has lessened Magnificent 7&#8217;s year-to-date performance to a degree, but the Roundhill ETF, which tracks the seven companies, is still up over 35% in 2024.
Several experts have predicted <a href="https://www.benzinga.com/top-stories/24/06/39365183/warning-flags-expert-says-nvidia-in-bubble-ish-territory-points-to-potential-market-pullback">a larger market correction</a>, describing the valuations of NVIDIA and other heavily weighted stocks as &#8220;bubble-ish.&#8221;
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/large-cap/24/07/39931211/mortgage-rates-hit-lowest-point-since-february-as-investors-anticipate-fed-rate-cuts">Mortgage Rates Hit Lowest Point Since February As Investors Anticipate Fed Rate Cuts</a></li>
</ul>
Photo: Shutterstock

Magnificent 7 Still Comprise Over 30% Of S&P 500 Despite Tech Correction

It&#8217;s deep red on Wall Street on Wednesday, with tech stocks sharply falling amid a semiconductor broad-based selloff following news that the Biden administration is hastening<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39821315/ai-earthquake-semiconductors-suffer-worst-selloff-in-years-on-stricter-us-chip-expo"> export restrictions to China. </a>
Bloomberg reported on Wednesday that the U.S. administration has advised its allies to impose the strictest trade restrictions possible if companies such as Tokyo Electron Ltd. (OTCPK: TOELY) and ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) persist in supplying advanced chips to China. Shares of the Dutch chipmaker ASML Holding fell nearly 12%, notching the worst decline since March 2020. 
The tech-heavy Nasdaq 100 tumbled by 2.7% at 12:45 p.m. ET, marking the worst session since late August 2023. The semiconductor industry was the hardest hit. The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) and the VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) both plummeted over 6%, marking their worst day since October 2022.
The elite group of the &#8216;Magnificent Seven,&#8217; tracked by the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>), saw a collective market cap loss of $500 billion in a single trading session. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) alone plummeted 7%, accounting for a $180 billion loss.
The S&amp;P 500 dropped 1.2%, while blue-chip stocks of the Dow Jones rose 0.6% to 41,200 points, extending their all-time highs and marking a sixth consecutive session of gains. Meanwhile, small caps took a breather, with the Russell 2000 index falling 1%, ending a five-day winning streak.
U.S. natural gas futures fell over 6%, hitting two-month lows, due to lower-than-expected cooling demand amid milder weather forecasts for the next two weeks.
Oil prices rallied 1.9% after U.S. inventories declined again last week. Gold edged down 0.5% from the all-time highs reached on Tuesday. The dollar fell 0.4%, with the dollar-yen pair dropping 1.3%.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) eased 1.2%. 
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In US Major Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day % chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>41,154.73</td>
<td>0.5%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,240.18</td>
<td>-1.1%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,592.13</td>
<td>-1.3%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,862.83</td>
<td>-2.6%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:05 p.m. ET</figcaption></figure>
According to <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent071724&amp;t=be2bearmibe3na1">Benzinga Pro</a> data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.4% lower to $557.02.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose by 0.4% to $411.20.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(ARCA:&nbsp;<a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a><a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a>QQQ) eased 2.7% to $482.82.</li>
<li>Sector-wise, the&nbsp;Consumer Staples Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)&nbsp;outperformed, up by 1.3%, while the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down 3.6%.</li>
</ul>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) tumbled 8.3%, dropping below the 50-day moving average support. </li>
<li>U.S.-listed shares of Taiwan Semiconductor Manufacturing (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) plummeted 7% following reports that U.S. presidential candidate Donald Trump suggested Taiwan should compensate the U.S. for its defense.</li>
<li>British chipmaker Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) tumbled 8.7%.</li>
<li>Other chip giants, including Marvell Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), Lam Research Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>) and Applied Materials, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>), also saw declined by about 8%.</li>
<li>Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) rallied 3.7% on stronger-than-expected quarterly results. </li>
<li>Charles Schwab Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>) plunged 9.4%, following a 10.2% drop on Tuesday, as several analysts lowered their price targets in response to disappointing Q2 earnings.</li>
<li>Other stocks reacting to company earnings were Elevance Health Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELV#NYSE">ELV</a>), down 6.5%, U.S. Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>), up 4.6%, Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), down 3%, Northern Trust Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTRS#NASDAQ">NTRS</a>), down 7%, Citizens Financial Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>), up 3.4% and Synchrony Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SYF#NYSE">SYF</a>), up 0.6%. </li>
<li>Companies reporting after the close include Alcoa Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>), Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>), Kinder Morgan, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>), SL Green Realty Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLG#NYSE">SLG</a>), Steel Dynamics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>) and United Airlines Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>).</li>
</ul>
Read now: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39819662/bank-of-america-analysts-stick-to-december-rate-cut-prediction-brace-for-election-f">Bank Of America Analysts Stick To December Rate Cut Prediction, Brace For Election-Fueled S&amp;P 500 Turbulence</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

ALLY

AMAT

ASML

streetTRACKS Dow Jones U.S. Large Cap Value Index Fund

LRCX

NTRS

SCHW

STLD

TOELY

Nasdaq 100 Suffers Worst Day In 11 Months As Chipmakers Tumble On China Curbs; Magnificent 7 Wipe Out $500B : What's Driving Markets Wednesday?

Bank of America U.S. economist Michael Gapen maintains his forecast that the Federal Reserve will make its first rate cut in December, diverging from the wide majority of analysts and investors who are heavily betting <a href="https://www.benzinga.com/topic/interest-rates">on a September move.</a>
During an event call on Wednesday organized by the investment bank, Gapen expressed that the U.S. economy is stabilizing, slowing, but not collapsing. The labor market remains robust, inflation is easing, and supply-side recovery keeps growth within potential.
&#8220;Disinflation has hit a speed bump in early 2024, but we think inflation will reach the 2% target in 2026,&#8221; Gapen stated.
Gapen anticipates the Fed to cut rates in December, followed by a pace of 25 basis points each quarter next year. 
He mentioned that more evidence, particularly further labor market cooling and progress in inflation, is required to shift his view to a September rate cut. &#8220;We need to hear what the Fed thinks at the July meeting,&#8221; he added.
<h3 class="wp-block-heading">Equity market outlook: Go value</h3>
Analyst Savita Subramanian presented a cautiously optimistic outlook on the U.S. stock market, despite potential near-term volatility.
Bank of America stuck with a year-end S&amp;P 500 target of 5,400 points, indicating some downside from current levels but also highlighting opportunities in certain sectors.
&#8220;Election uncertainty is significant,&#8221; Subramanian noted. &#8220;We&#8217;re entering a seasonally weak period marked by heightened policy uncertainty, which could lead to a pullback.&#8221;
Subramanian remains confident in large-cap value stocks within cyclical sectors like energy, financials, and materials, despite a more conservative view on the overall index.
According to Subramanian, investors are overestimating the negative risks in the current economic environment and underestimating the probability of a period of relative economic stability. &#8220;The economy is likely to perform well over the next few years due to substantial fiscal stimulus, despite concerns about the deficit.&#8221;
Bank of America&#8217;s U.S. regime indicator is currently in the &#8220;Recovery&#8221; phase, which supports value and risk. This phase typically aligns with stronger earnings growth. 
In 2023, the &#8220;Magnificent 7&#8221; companies, as tracked by the Roundhill Magnificent Seven ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NYSE">MAGS</a>), posted strong earnings growth, while the rest of the S&amp;P 500 experienced an earnings recession.
The situation has flipped: the &#8216;Other 493&#8217; companies in the S&amp;P 500 are now exhibiting earnings growth, while mega-cap tech companies are starting to decelerate.
Read now: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39697429/the-other-493-set-to-grow-more-than-magnificent-7-this-earnings-season-bank-of-amer">&#8216;The Other 493&#8217; Set To Grow More Than &#8216;Magnificent 7&#8217; This Earnings Season: Bank Of America</a></li>
</ul>
Image created with photos from Shutterstock and using artificial intelligence via Midjourney.

Bank Of America Sticks To December Rate Cut Prediction, Braces For Election-Fueled S&P 500 Turbulence

In 2024, the share prices of large-cap companies have soared while small-caps have struggled. Thursday&#8217;s price action could mark a key reversal in <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/07/39673296/just-17-of-s-p-500-stocks-outperform-the-index-what-does-that-mean-for-the-market">this year&#8217;s trend</a>.
Price Action: The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), which tracks small-cap stocks, closed up 3.63% on the day. The iShares Russell 1000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWB#NYSE">IWB</a>), which tracks large-cap stocks, was down 0.66% on the day.
The difference between the two indexes&#8217; performances was therefore over 4%.
The Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>), which tracks Microsoft Corp, Apple Inc, NVIDIA Corp, Alphabet Inc, Meta Platforms Inc, Amazon.com Inc and Tesla Inc, saw a big down day. The share prices of the Magnificent Seven collectively fell 4.49%.
Why it Matters: According to a <a href="https://x.com/edclissold/status/1811426303750643828">post</a> on X by strategist Ed Clissold, the Russell 2000 posted one of its best days ever compared to the Russell 1000 on Thursday. A difference between the two indexes of over 4% has only occurred on four occasions:
<ul>
<li>On Oct. 19, 1987, &#8220;Black Monday.&#8221;</li>
<li>On Oct. 10, 2008, during the Great Recession.</li>
<li>On Oct. 4, 2011, following a market low during the European debt crisis.</li>
<li>And on March 19, 2020, near the bottom of a pandemic-driven low.</li>
</ul>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">FWIW, here are Russell 2000/1000 ratio returns after the previous 4 cases. Mixed bag. 2/2 <a href="https://t.co/fXKeKtm61t">pic.twitter.com/fXKeKtm61t</a>
&mdash; Ed Clissold (@edclissold) <a href="https://twitter.com/edclissold/status/1811426470499319950?ref_src=twsrc%5Etfw">July 11, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
All of the dates mentioned above occurred during periods of decline; the latest addition to the list is an outlier, as the S&amp;P 500 index is near an all-time high. Alternatively, Thursday&#8217;s results could suggest outcomes similar to historical performance following 4% days.
Small caps seemingly benefited from Thursday&#8217;s <a href="https://www.benzinga.com/economics/macro-economic-events/24/07/39728268/inflation-slows-more-expected-to-3-in-june-heightens-expectations-for-rate-cuts-t">cooler-than-expected</a> June consumer inflation report, which could play a part in preempting interest rate cuts later this year. The higher-for-longer interest rate environment <a href="https://www.benzinga.com/news/24/05/39013274/newedge-wealths-cameron-dawson-talks-prolonged-high-interest-rates-on-premarket-prep">benefitted large-cap</a> companies with extensive cash piles and hurt smaller businesses reliant on debt.
Also Read: 
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/07/39733667/inflation-data-sparks-rush-for-gold-real-estate-treasuries-yen-traders-see-september-rate-cut-as-don">Inflation Data Sparks Rush For Gold, Real Estate, Treasuries, Yen: Traders See September Rate Cut As Done Deal</a></li>
</ul>

The Market Did Something Thursday That Has Only Occurred 4 Times In History

Four of the largest companies in the world have hit new all-time highs in recent weeks with Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) helping power the S&amp;P 500 Index to<a href="https://www.benzinga.com/markets/equities/24/07/39695400/s-p-500-hits-record-highs-eyes-6th-straight-gain-as-powell-keeps-bears-at-bay-tesla-targets-10th"> new all-time highs.</a>
A Benzinga poll sizes up the four technology stocks to see which investors think is the better buy right now.
What Happened: Large technology stocks and members of the Magnificent 7 continue to outperform the overall market, hitting new highs and seeing their weighting in the S&amp;P 500 <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/05/39069969/magnificent-7-hits-31-weighting-for-s-p-500-top-5-holdings-hit-27-weighting-will-inves">hit historic highs.</a>
Here's a look at the one-year and year-to-date performance of the four stocks mentioned above:
<ul>
<li>Apple: 1-Year: +23.0%, YTD: +20.5%</li>
<li>Microsoft: 1-Year: +39.4%, YTD: +23.0%</li>
<li>Meta Platforms: 1-Year: +82.5%, YTD: +51.7%</li>
<li>Alphabet: 1-Year: +64.3%, YTD: +36.2%</li>
</ul>
Compare that to the S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which is up 27.2% in the last year and up 17.6% year-to-date in 2024.
Given the new all-time highs hit by these well-known stocks, Benzinga recently asked readers to pick which one of the four they think would outperform.
"Apple, Microsoft, Meta and Google stocks hit 52-week highs, which would you buy right now?" Benzinga asked.
Here are the results:
<ul>
<li>Apple: 29%</li>
<li>Microsoft: 32%</li>
<li>Meta: 16%</li>
<li>Google: 23%</li>
</ul>
Microsoft edged out Apple for the victory in the poll, with Google and Meta trailing in third and fourth place, respectively. No stock received over a third or more of the vote, showing a close battle between the four stocks.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39665665/apple-microsoft-meta-google-stocks-hit-52-week-highs-which-is-the-best-investment">Apple, Microsoft, Meta, Google Stocks Hit 52-Week Highs: Which Is The Best Investment?</a>
Why It's Important: Along with voting, readers were asked to give their reasoning why they made their selection and picked one stock over the other three.
For the winner Microsoft, readers pointed to the company's "clearer path to growth with AI and cloud." Several comments mentioned artificial intelligence or AI in their choice of Microsoft. Other readers highlighted Microsoft's stock value and long-term price growth. Another reader said Microsoft could have the strongest return on investment of the four companies.
Apple received comments about its strong brand loyalty and loyal customers. The company's AI potential was also given as a reason as Apple looks to its next growth phase.
Readers who picked Alphabet pointed to the company's low price-to-earnings ratio and better valuation than the other stocks. The stock also got supportive comments about the vast number of projects Google is involved in and "working on countless future products."
For Meta, readers who selected the stock said the company looks inexpensive based on growth and earnings. Another user said they picked Meta after being familiar with the company and its products. Another reader who already owns the other three stocks said they would pick Meta to create a new position instead of adding to their existing investments.
The four companies are currently among the largest <a href="https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-sp-500-etf-trust-spy">holdings </a>in the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) with Microsoft and Apple the two largest components at 7.3% and 7.0% respectively. Alphabet ranks fourth at 4.4% for both classes of its stock combined, and Meta is sixth at 2.5%.
Investors can also get increased exposure to the four stocks with the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>), which invests in the Magnificent 7 stocks.
The study was conducted by Benzinga on July 8 and July 9 and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 104 adults.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39697429/the-other-493-set-to-grow-more-than-magnificent-7-this-earnings-season-bank-of-amer">&#8216;The Other 493&#8217; Set To Grow More Than &#8216;Magnificent 7&#8217; This Earnings Season: Bank Of America</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Apple, Microsoft, Meta, Google: Which Would You Buy At All-Time High? Investor Poll Reveals Split Opinions

The second quarter is projected to be the first in which the &#8220;Other 493&#8221; companies — those outside the &#8220;Magnificent 7&#8221; tech giants — will exhibit earnings growth after five quarters <a href="https://www.benzinga.com/earnings#:~:text=The%20time%20period%20that%20corresponds,%2C%20June%2C%20September%20and%20December.">of stagnation or decline.</a> 
This development could broaden market gains as tech sector growth slows, according to Bank of America.
Bank of America&#8217;s analysts, Ohsung Kwon, CFA and Savita Subramanian, presented a more conservative outlook on Q2 earnings for U.S. companies compared to consensus estimates. 
While the consensus expects earnings per share (EPS) to rise by 9% year-over-year in Q2, the analysts anticipate a 2% beat which aligns with historical averages but is the smallest since Q4 2022. 
Behind the weaker-than-expected forecasts, analysts cited the weak macroeconomic data last quarter.
&#8220;Economic Surprise Index&nbsp;is at the lowest level since June 2015.&nbsp;The historical relationship points to a&nbsp;3% EPS&nbsp;miss,&#8221; Bank of America wrote. 
<h3 class="wp-block-heading">&#8216;Magnificent 7 vs. The Other 493&#8217;</h3>
The Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>) has underperformed the cap-weighted SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) by approximately 13 percentage points year-to-date. This gap widens significantly when comparing the broader market with the Magnificent 7, as tracked by the Roundhill Magnificent Seven ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NYSE">MAGS</a>), as illustrated in the chart below from Benzinga Pro.
This trend could potentially be halted in the upcoming weeks. As the tech sector&#8217;s rapid growth begins to decelerate, the broader market, represented by the &#8220;Other 493&#8221; companies, is poised for earnings growth, according to Bank of America. 
<figure class="wp-block-image size-large"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070924&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="544" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/09141136/image-14-1024x544.png" alt="" class="wp-image-427078" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/09141136/image-14-1024x544.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/09141136/image-14-300x159.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/09141136/image-14-768x408.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/09141136/image-14-1536x816.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/09141136/image-14.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
&#8220;2Q is expected to&nbsp;be&nbsp;the first&nbsp;EPS&nbsp;growth quarter for the Other 493&nbsp;since 4Q22, whereas growth for the Magnificent 7 is expected to slow for the second straight quarter and again in 3Q,&#8221; analyst wrote.
The Magnificent 7&#8217;s earnings recovery began earlier because they entered an earnings recession in the second half of 2022. This prompted tech companies to implement cost-cutting measures sooner, resulting in an earlier recovery, Bank of America explained.
Year-to-date, tech layoffs have significantly decreased, while layoffs outside the tech sector have increased, indicating more cost-cutting opportunities in non-tech industries. 
These efforts are expected to enhance margins for the &#8220;Other 493&#8221; in 2024-25.
<h2 class="wp-block-heading">&#8216;Virtuous Cycle&#8217; From AI Investments</h2>
A virtuous cycle appears to be forming from AI investments. Major tech companies — Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) and Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) — confirmed last quarter that 2024 is set to be the first year of a multi-year AI investment cycle. The consensus capex forecast for these companies increased by $18 billion during Q1 earnings season to approximately $200 billion, a 34% year-over-year rise.
Historically, companies in reinvestment cycles underperform, but AI investments could create a virtuous cycle. 
Semiconductor &#8220;are the most obvious beneficiaries,&#8221; Bank of America highlighted. Yet, the rising power consumption from AI and the construction of data centers are anticipated to boost demand for electrification, construction, utilities, and commodities, ultimately creating more jobs.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/government/24/07/39692871/trumps-deregulation-agenda-oil-gas-defense-and-finance-stocks-may-benefit-from-loose-rules-goldman-s">Trump&#8217;s Deregulation Agenda: Oil &amp; Gas, Defense, And Finance Stocks May Benefit From Loose Rules, Goldman Sachs Says</a></li>
</ul>
Image: Shutterstock

Rydex ETF Trust Rydex S&P Equal Weight ETF

'The Other 493' Set To Grow More Than 'Magnificent 7' This Earnings Season: Bank Of America

A small group of artificial intelligence (AI) stocks played a large part in sending the S&amp;P 500 to<a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/07/39673296/just-17-of-s-p-500-stocks-outperform-the-index-what-does-that-mean-for-the-market"> historic performance in 2024</a>. While there are all-time highs and rapid share price appreciation in the AI play, some experts are skeptical that the rally can continue.
The AI Analyst: In a Monday note, Citigroup (Citi) analyst Drew Pettit told investors to &#8220;take profits&#8221; on AI amid top performers&#8217; sky-high performance. Pettit&#8217;s takeaways were <a href="https://www.bloomberg.com/news/articles/2024-07-09/citi-says-it-s-time-to-book-profits-in-high-flying-ai-equities">revealed</a> in a Bloomberg report.
Main Takeaways: The analyst stated that while betting against AI "would be difficult for many on the buy-side," investors should rebalance portfolios away from the high-fliers and into AI companies trading cheaper. Pettit is particularly skeptical about chipmaker stocks&#8217; continued performance.
A small number of AI stocks have <a href="https://www.benzinga.com/top-stories/24/06/39383798/the-ai-big-10-10-ai-stocks-now-comprise-28-of-s-p-500-up-from-14-in-2023">roundly outperformed the S&amp;P 500</a> and are heavily concentrated in the index; thus, the markets are now dependent on the AI play to continue its rally.
Pettit stopped short of labeling the AI rally as a &#8220;bubble.&#8221;
"Our estimates suggest stock prices imply lofty expectations, but long-run consensus estimates suggest most are attainable," the analyst said. "Essentially, sentiment is very optimistic, but still seems shy of a full-blown bubble."
Goldman Sachs Weighs In: Citi&#8217;s relative pessimism on some AI companies comes amid other analysts&#8217; comments on AI.
Jim Covello, the head of global equity research at Goldman Sachs, <a href="https://www.benzinga.com/news/24/06/39565574/goldman-sachs-casts-doubt-on-exceptionally-expensive-ai-investments-by-tech-companies">offered a warning</a> on the AI play in June.
&#8220;AI technology is exceptionally expensive, and to justify those costs, the technology must be able to solve complex problems, which it isn't designed to do," Covello said. &#8220;&#8230;In our experience, even basic summarization tasks often yield illegible and nonsensical results."
Price Action: Investors did not seem to heed Citi&#8217;s warning on Tuesday. 
<ul>
<li>Super Micro Computer Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) traded at $927.01, up 3.08%.</li>
<li>NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) traded at $133.58, up 4.19%.</li>
<li>Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) traded at $134.04, up 2.56%.</li>
<li>Applied Materials, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>) traded at $250.01, up 1.51%.</li>
<li>Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) was up 1.09%.</li>
</ul>
(All share price data taken from the time of writing.)
Also Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39654001/nvidia-gets-rare-downgrade-over-concerns-that-demand-is-normalizing-in-line-with-ex">Nvidia Gets Rare Downgrade Over Concerns That Demand Is Normalizing &#8216;In Line With Expectations:&#8217; Stock &#8216;Getting Fully Valued&#8217;</a></li>
</ul>

Photo: Shutterstock

Comments

Roundhill Magnificent Seven ETF

Notizie

Ultime notizie per Roundhill Magnificent Seven ETF (NASDAQ:MAGS)

Notizie

PARTNER/COLLABORATORE

BENZINGA NEL MONDO