Magnificent Seven Drags Down Tech-Heavy Index❗️
The Nasdaq leads today’s Wall Street sell-off, dropping 2% in its worst performance since the dismal session following the Fed’s hawkish pivot a week ago. The decline appears driven by profit-taking after significant gains in megacap stocks and a recalibration of investor enthusiasm around the AI craze, with a growing focus on actual returns from AI investments in 2025.
The "Magnificent Seven" weighed heavily on the tech-heavy index, with all tech giants impacted by the negative market sentiment. Tesla suffered the steepest decline (TSLA.US: -5.1%), followed by Nvidia (NVDA.US: -3.1%), Amazon (AMZN.US: -2.8%), Microsoft (MSFT.US: -2.5%), Alphabet (GOOGL.US: -2.5%), Meta (META.US: -2%), and Apple (AAPL.US: -2%). Looking ahead to 2025, sentiment toward Big Tech may face additional moderation, as forecasts suggest a potential weakening in the Magnificent Seven’s relative performance against the market benchmark.
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The Nasdaq contract has closed more than ⅔ of the gap between the most recent high and the resistance at the 21400 mark. The future of the year-end momentum is to be determined by the test of 30-day EMA (light purple), which is the main zone of defense for the bulls. Source: xStation5
Source: Yahoo Finance
