It wasn't such a great Tuesday.
The Magnificent Seven, a group of technology companies that have supported the stock market rally for months, shed a combined $233 billion in market capitalization on Tuesday, adding to the decline in U.S. stocks.
Apple.
AAPL
Shares fell 2.8% on Tuesday.
AMZN
It decreased by nearly 2%.Microsoft stock
MSFT
Google's parent company Alphabet fell 3%.
google
Google
,
Meta Platforms Co., Ltd.
meta
and Tesla Inc.
TSLA
They fell by 0.5%, 1.6%, and 3.9%, respectively.
Of the group of seven popular tech stocks, only Nvidia Corp.
NVDA
It ended Tuesday up by 0.9%.
Tuesday's decline marks the third-largest single-day market cap decline for Magnificent Seven Group this year, according to Dow Jones Market Data, and the largest single-day decline since Jan. 31. The $375 billion reversal was the largest recorded in a day.
“We're in the middle of a pullback,” said Peter Cardillo, chief market strategist at Spartan Capital Securities. “How far down it goes depends on the situation. If we get a curve ball from Powell tomorrow and the jobs report is better than expected, March will be here.”
Mr. Cardillo was referring to the March Days, generally believed to occur around March 15, when William Shakespeare warned of a bloody betrayal of Julius Caesar in his famous play. . Wall Street also tends to be closely watched on this day for signs of trouble.
More immediately, Fed Chairman Jerome Powell is scheduled to begin two days of Congressional testimony on Wednesday, with investors hoping to learn more about the central bank's plans to eventually cut interest rates.
With inflation still above the central bank's 2% annual rate, investors are betting on the possibility of a rate cut this year after Fed officials said there was no need for an early or aggressive shift in rate-hiking policy. The expected timing and scale of sex are being reduced. the goal.
“This is not panic selling,” said Michael Sansoutera, chief investment officer at Sylvant Capital Management, which focuses on large-cap and small-cap U.S. stocks. He said the exit of companies with “narrow leadership” in the stock market was not surprising, as stock prices have been hitting new records recently.
“This is just a normal market movement in a strong bull market since the beginning of the year,” Sansoterra said.
On Tuesday, the Dow Jones Industrial Average DJIA fell 404 points, or 1%, the S&P 500 index SPX fell 1% and the Nasdaq Composite Index COMP closed 1.7% lower.
An update on the February job market will be released on Friday. The labor market and economy have remained surprisingly resilient, even as the Federal Reserve has kept short-term interest rates at 22-year highs as part of its efforts to fight inflation.
