The so-called Magnificent Seven mega-cap stocks have powered much of the S&P 500's gains. However, their dominant run may be ending, according to JonesTrading Chief Market Strategist Mike O'Rourke. O'Rourke pointed to recent earnings from Meta (META) and Nvidia (NVDA) that "shattered" expectations yet saw different market reactions. He notes the Magnificent Seven valuations have diverged "drastically," causing investors to "differentiate" between them rather than treat them as a uniform group. As growth moderates for these mega-cap stocks, O'Rourke expects "rotation" within the Magnificent Seven tech companies as investors compare valuations and future trajectories. He believes this could force funds into other promising areas of the market beyond the narrow mega-cap technology focus, like biotech and pharma. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith
Chinese automaker BYD is eyeing rapid international expansion after becoming the world's top electric vehicle seller. Just don’t expect the EV maker to come to the US anytime soon.
Apple (AAPL) has halted its decade long project to develop an electric car, according to a Bloomberg report. Senior Columnist Rick Newman notes Apple's profit margin on smartphones and software is far above that of automakers'. He says full-scale auto manufacturing "doesn't fit with [Apple's] business model" given the complexities of the market. With the Apple car now scrapped, Senior Tech Editor Dan Howley explains Apple's intentions to redirect investments towards generative AI and machine learning. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith