Magnificent Seven-ex Tesla has driven the S&P 500 to close at 1.47% year-to-date after the first three weeks of 2024. Expecting the group to push higher this year due to strong balance sheets and their revenue growth (except Tesla) will be less immune to the effects in the event the Fed does not hike the 6 rate cuts the market is pricing in.
As Tesla is primarily selling cars, if interest rates remain higher for longer, revenues will remain pressured this year, coupled with intense competition from Chinese EV makers.
Year-to-Date Magnificent Seven gain (loss)
Nvidia +20.13%
Meta +6.26%
Alphabet +4.79%
Microsoft +4.74%
Amazon +2.24%
Apple -0.50%
Tesla -14.6%
S&P 500 +1.47%
Nasdaq Composite +2.0%
Dow Jones +0.46%
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