The S&P 500 peaked in mid-July, but since then, the Magnificent Seven stocks have mostly slumped|Rolf Kleef|CC BY 2.0
The stock market has rebounded from its summer selloff, with the S&P 500 recovering most of its losses. While Big Tech has traditionally led gains, sectors like real estate, utilities and consumer staples have surged 11% since July.
Investors are moving towards sectors like real estate, utilities and consumer staples amid fears of slow economic growth.
The S&P 500 peaked in mid-July, but since then, the Magnificent Seven stocks, which include Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla, have mostly slumped.
Earnings outlook and future trend
Tech’s profit growth slowed to 36% in the second quarter, down from over 50% in previous quarters.
Conversely, healthcare profits rose 16% in Q2 and are projected to grow by 45% in the first quarter of 2025.
Despite tech’s slowdown, valuations remain high. Microsoft is priced at 32 times projected profits, above its decade average of 25.