Mag 7 Hit Hard: Plan Dip Buying Amid Corrections?

Yesterday, $NASDAQ(.IXIC)$ fell by 1.95%; and $S&P 500(.SPX)$ dropped by 0.88%; $DJIA(.DJI)$ rose by 0.08%. The market finally experienced the anticipated/worrisome pullback.

Magnificent 7 hit hard.

$Tesla Motors(TSLA)$ announced that the release of their Robotaxi will be delayed, plunging 8.44%.

Jim Covello, Head of Equity Research at Goldman Sachs, pointed out that the current AI bubble might be more severe than the internet bubble. $NVIDIA Corp(NVDA)$’s decline led to a drop in the semiconductor sector, with $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ closing down 9.6% yesterday.

How do you view market’s decline?

Some believe it's a healthy pullback:

If there isn't any correction, then it isn't a normal market.

We are 1% off all-time highs. Hardly even close to a 'dip.'

Some expect more corrections and consider bottom fishing later:

Dip buying here, will buy more if they pull back further. Long term trend still heavily favors big cap tech.

Please, please, please dip even more NVDA, don't be shy, I want to buy in bulk. It's like shopping at Costco but for stocks.

Are there other opportunities in the market now?

According to Bespoke Investment Group, this is the first time since October 10, 2008, that the Russell 2000 small-cap index $iShares Russell 2000 ETF(IWM)$ has risen over 3% while the S&P 500 large-cap index has declined. It's also the second time this has happened since 1979.

With easing inflation pressure and rising rate cut expectations, market funds are starting to reallocate. Investors are beginning to shift from large-cap tech stocks to sectors more sensitive to interest rates, such as small-cap stocks and biotech stocks.