The 'Magnificent Seven' stocks are no longer trading as a cohesive block, with their average 60-day correlation hitting a decade low . This divergence challenges investors to focus on individual company fundamentals and AI exposure rather than treating the group as a single trade.
Key points:
- MAGS ETF is up 7% YTD, lagging the S&P 500's 12% gain .
- Tesla and Meta are down YTD, while Nvidia and Apple outperform the S&P 500 .
- Upcoming earnings from Microsoft, Alphabet (today), and Amazon (tomorrow) will further test individual performance .
This shift suggests a more granular approach is needed for mega-cap tech investing, moving away from broad group-based strategies .
The ‘Magnificent Seven’ is no more. Time to pick winners and losers as group’s correlation breaks down
CNBC.COMOct 28, 1:09 PM UTC
0