'Magnificent 7' Tumble As $300B Vanishes On Bleak AI Earnings: Could The Fed Make Things Worse?
Portfolio Pulse from Piero Cingari
The 'Magnificent Seven' tech giants, including AAPL, MSFT, GOOG, GOOGL, AMZN, META, NVDA, and TSLA, lost $300 billion in market value after disappointing earnings, particularly from Alphabet and AMD. The Nasdaq 100 index (QQQ) and Technology SPDR Select Sector Fund (XLK) also fell. The market is awaiting the Fed's interest rate decision and comments from Chair Jerome Powell, which could further impact tech stocks.
January 31, 2024 | 5:10 pm
News sentiment analysis
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NEGATIVE IMPACT
Apple Inc. saw a $42.52 billion loss in market cap after a broader tech sell-off due to weak earnings reports.
Apple's significant market cap loss is directly related to the broader tech sell-off and investor sentiment may be further affected by the upcoming Fed decision.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Amazon.com Inc. lost $32.50 billion in market cap, affected by the tech sell-off and potentially by the Fed's upcoming interest rate decision.
Amazon's market cap decline is part of the broader tech sell-off, with additional investor concern over the Fed's interest rate decision.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Alphabet Inc. faced a $121 billion market cap drop, leading the tech sell-off due to its weaker-than-expected earnings report.
Alphabet's substantial market cap loss is a primary driver of the tech sell-off, and the Fed's upcoming decision could exacerbate the impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Alphabet Inc.'s Class A shares also suffered a significant loss in market value due to the broader tech sector's negative earnings sentiment.
GOOGL's loss mirrors that of GOOG, as both reflect Alphabet's influence on the tech sector's performance and investor anticipation of the Fed's decision.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Meta Platforms Inc. saw an $18.48 billion decrease in market cap amid a tech sector slump and ahead of the Fed's interest rate announcement.
Meta's market cap loss is linked to the tech sector's overall performance and may be influenced by the Fed's impending rate decision.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Microsoft Corp. experienced a $38.87 billion reduction in market cap amidst a tech sector downturn following disappointing earnings.
Microsoft's market cap loss reflects the negative earnings impact and investor concerns ahead of the Fed's interest rate decision.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
NVIDIA Corp. erased $46 billion in market value, with its AI-driven growth prospects in question and the Fed's decision on the horizon.
NVIDIA's significant market cap loss reflects concerns over AI growth and earnings, with potential for further impact from the Fed's rate decision.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Invesco QQQ Trust, tracking the Nasdaq 100 index, fell 1.6%, reflecting the tech sector's sell-off and investor caution ahead of the Fed's decision.
QQQ's decline is indicative of the broader tech sector's performance, with potential for increased volatility due to the Fed's interest rate decision.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Tesla, Inc. faced a $5.45 billion loss in market value, part of the tech sector's broader decline and potentially affected by the Fed's rate decision.
Tesla's market cap loss is part of the tech sector's downturn, with investor sentiment possibly swayed by the Fed's upcoming interest rate decision.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
NEGATIVE IMPACT
Technology SPDR Select Sector Fund (XLK) regressed by 1.5%, mirroring the tech sector's downturn and possibly influenced by the Fed's rate decision.
XLK's drop is a reflection of the tech sector's negative performance, with the upcoming Fed decision potentially affecting investor sentiment.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The article incorrectly associates SPY with the Nasdaq 100 index, which is actually tracked by QQQ. SPY tracks the S&P 500 and is not directly mentioned in the context of the tech sell-off.
SPY is not directly impacted by the tech sell-off as mentioned in the article, and there is no direct correlation with the Nasdaq 100 index in this context.
CONFIDENCE 100
IMPORTANCE 0
RELEVANCE 0