Chart of the Week: Taking a closer look at the Magnificent Seven
Published On Oct 26, 2024, 6:00 AM
The article focuses on the recent performance of the tech stocks known as the 'Magnificent Seven', particularly emphasizing Tesla's significant stock jump after announcing strong quarterly results. Following a notable 22% increase, Tesla has regained momentum despite having lagged its peers for much of the year. Currently, all seven companies in this group are positive in the year-to-date comparison, following various levels of recovery. Nvidia continues to show impressive returns, standing out as a key driver for the S&P 500, while other companies have also performed well, indicating a broader market rotation.
Stock Forecasts
TSLA
Positive
Tesla has made a strong comeback this week, but its long-term position among the tech giants remains uncertain as it lags behind peers like Nvidia. However, if the market sentiment continues to favor tech stocks, we might see a more consistent upward trajectory for Tesla in the near future. Investors should monitor Tesla's future earnings reports closely, as continued strong performance could bolster investor confidence further.
NVDA
Positive
Nvidia's robust performance continues to break away from other issues within the tech sector. Its leadership in AI-related technologies has significantly driven stock performance, suggesting a sustained positive outlook as it remains a critical player in growing tech spending.
MSFT
Negative
As the broader market includes more companies performing well, some rotation into other sectors may lead to traditional tech stocks underperforming compared to newer growth names, which could lead overall near-term performance of more established names like Microsoft and Apple being tempered.
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