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The Magnificent Seven tech stocks are pulling back as US market indexes (^DJI, ^IXIC, ^GSPC) decline, contrary to Wall Street's hopes for a Santa Claus rally. What is the next phase of the AI trade and Mag Seven momentum looking like going into 2025?
MDB Capital president and chief market strategist Lou Basenese sits down in-studio with Seana Smith and Madison Mills for a conversation about where he expects market momentum to broaden out in the coming new year.
"The heavy concentration is the fact that if we look at the other 493 stocks in the S&P 500 (^GSPC), expectations are for their growth in earnings to accelerate significantly. So from about 4% this year to 13%," Basenese explains. "So we need other names to pick up and carry the ball in 2025. And I think we're going to see that happen. The tech sector is obviously going to have the strongest growth, but we need to see everyone else participating."
Basenese goes on to comment about where bitcoin (BTC-USD), the volatility index (^VIX), and even the Federal Reserve fit into market expectations.
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Bernstein Private Wealth Management Senior Investment Strategist Roosevelt Bowman told Yahoo Finance earlier today that the next AI investment plays could include power and energy suppliers and semiconductor cooling technology.
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This post was written by Luke Carberry Mogan.