"The Seven Giants Fall, All Things Grow"?
Suddenly, the "Big Seven" looked like they were losing their shine.
Although it is difficult to draw such a conclusion from one trading day, this Monday (December 11) a remarkable event occurred in the United States** that caught the attention of Wall Street and raised new questions about who will lead the future of the United States**.
Yesterday, all three major U.S. stock indexes closed at new 52-week highs, and the Dow Jones Industrial Average (DJIA) closed at its highest level in nearly two years. However, none of the "Big Seven" of U.S. stocks **. On the contrary, in addition to ** 0With the exception of 78% of Microsoft Corporation (MSFT), all of the Big Seven companies have at least **1% share prices.
The Big Seven outside of Microsoft are as follows: Meta Platform (Meta) ** 224% and Apple Inc. (AAPL) ** 129% and NVDA ** 185%, Amazon (AMZN) ** 104%, Google parent company Alphabet (GOOG)**142% of Tesla's (TSLA) stock price**168% 。
How unusual is this situation?It turns out that it is extremely rare for the Nasdaq to move higher without the help of its greatest weighting.
Dow Jones market data showed that the Nasdaq 100 index on Monday closed in the green while all the Big Seven** closed in the red for only the second time since Facebook's parent company Meta Platforms went public in 2012. The last time this happened was on November 9, 2016, when Donald Trump defeated Hillary Clinton in the United States.
It's also worth noting that the Philadelphia Semiconductor Index SOX, a closely watched measure of the semiconductor industry's performance, also hit a new high on Monday, and artificial intelligence darling Nvidia didn't help with that. Nvidia stock price on the day**185 percent, the company's sales have risen sharply this year, and shares have soared more than 200 percent, while the Philadelphia Semiconductor Index SOX closed at 3,902 on Monday38 points, ** 34%。
Market strategists say that all this is made all the more remarkable by the fact that it is happening right now.
As the end of the year approaches, investors are trying to see who might be the new frontrunner in 2024, and in 2024, investment returns will be led by these 7.
In an interview with MarketWatch, Steve Sosnick, chief market strategist at Interactive Brokers, said: "It's surprising that the Big Seven can still be able to do so when the Big Seven are more than 40% weighted by the Nasdaq 100," and that "the idea that seven in one market outperforms almost all is unsustainable." At some point, you'll have to count on the other 493 (S&P 500 companies) to catch up. ”
But Sosnik cautioned against interpreting Monday's move as a sign that the long-awaited rotation of leaders is underway in order to sustain the bull market in 2024.
To be sure, the width of the market was quite strong on Monday, which may help offset some of the drag from the Big Seven. In the Nasdaq 100, there are 87***, which is the highest single-day record since 90 on November 20.
According to Dow Jones data, 366 stocks in the S&P 500*** were the biggest gainers since December 1 last year. The Russell 3000 RUA index, which tracks the entire U.S. market, is up 04% to close at 2,65224 points, the highest since April 2022. At the same time, defensive sectors such as consumer staples have outperformed the S&P 500, according to Factset.
Still, the semiconductor sector was strong on Monday, with Broadcom (**GO) shares up 9% to a new record of nearly $1,030.
The semiconductor industry is not lagging behind. According to Factset, the previously mentioned Philadelphia Semiconductor Index has risen more than 54% so far this year.
Investors are still obsessed with tech stocks. But now, they seem to be eyeing the next batch of tech stock winners. ”
Text by Joseph Adinolfi
Edited by Yu Zhou
Copyright Notice: Barron's original article, without permission, may not**. For the English version, see December 11, 2023**, "something remarkable and extremely rare happened in the u."s. stock market on monday.”。
The content of this article is for informational purposes only and does not constitute any form of investment and financial adviceThe market is risky and investors should be cautious. ）