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- 😲 Why The Magnificent 7 Rally Faces Serious Risks
😲 Why The Magnificent 7 Rally Faces Serious Risks
Plus, going abroad could be profitable, and more
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Happy Tuesday! Big Tech's dominant run hit a wall as the Magnificent Seven shed over $750 billion in market cap, raising questions about stretched valuations and shifting market dynamics. Here’s what this sharp sell-off signals for investors — and where the market could go from here. Also, discover why going global could be the better move for your portfolio this year.
—Josh Enomoto
Plus, if you’re looking for an innovative biopharmaceutical investment, check out today’s sponsor.
MARKET RECAP
Yesterday: Stocks tumbled Monday as weaker consumer sentiment and slowing consumer spending fueled growth concerns, with the Nasdaq leading losses. Bond yields edged lower as markets priced in Fed rate cuts, while investors turned their focus to key inflation data later this week for further direction.
On Our Radar: Following the Monday blues, analysts will anxiously await Wednesday’s core CPI report. On the earnings front, discount retailer Casey’s General will disclose its results after the closing bell.
TOP STORY
The sharp pullback in the Magnificent Seven underscores growing investor concerns about lofty valuations and shifting economic conditions.
SPONSORED CONTENT
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FIVE ZINGERS
Choppy Waves: BlackRock CEO Larry Fink believes this year could see much uncertainty and market fluctuations. Still, read why the executive remains largely optimistic.
Cease Fire: Following a contentious meeting between President Trump and Ukrainian President Volodymyr Zelenskyy, the White House halted weapons shipments to the war-torn nation. Here are six defense stocks to watch.
Lost Charge: EV manufacturer Tesla saw its equity plunge on Monday, representing the worst single-day drop in five years. Learn about the key negative catalysts weighing down sentiment.
Fun Times: Vail Resorts posted its Q2 results, beating on earnings and meeting the revenue estimate of $1.14 billion. Discover the line items boding well for certain segments of the consumer economy.
Mishap Abroad: Alibaba shares dropped significantly on Monday, demonstrating that Chinese stocks were not immune from the fallout. Here are the headwinds taking a bite out of BABA.
SPECIAL OFFER
Editor’s Note: Every week, Benzinga Edge members receive the Insider Report. It’s a rundown of what to expect from the markets in the week to come, which sectors are outperforming and why, and most importantly, a selection of hand-picked stocks that are poised to move up because of that week’s trends. Here’s a sneak peek:
It's been over a decade since traders and investors have been meaningfully rewarded by seeking opportunities abroad. In other words, market participants in the U.S. have been spoiled, but as a global geopolitical realignment is taking place, it's playing out in markets too.
Two of the strongest big markets year-to-date include Germany and China. Personally, I think China has better tradable opportunities, but European stocks are enjoying their biggest run of outperformance against U.S. stocks in years.
I think 2025 will be a year to trade and invest abroad if you're looking to outperform the S&P. To be clear, I think U.S. stocks will have a decent year, but it will be far from a blowout market to the upside. This is going to frustrate both bulls and bears in this tape.
To keep reading and to find out how investors can get in front of the noise, sign up for the Insider Report here.
SPONSORED CONTENT
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