Is the Magnificent 7 trade in big trouble?
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So much for the untouchable "Magnificent 7 trade." Only one of the big-cap tech components — Meta (META) — has delivered double-digit gains year to date.
Amazon is the only other Mag 7 component to be up on the year to the tune of 5.9%, slightly ahead of the 3.4% increase for the S&P 500 (^GSPC). The other Mag 7 components Alphabet (GOOG, GOOGL), Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), and Tesla (TSLA) are all down year to date, with an average drop of 3% based on Yahoo Finance's calculations.
So what gives? Fears that the group as a whole is spending way too much to build out AI infrastructure, for starters.
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