Wall Street’s ‘Magnificent Seven’, comprised of seven of the S&P 500’s most promising large-cap tech stocks, is leading the longest rally in 2024. The S&P 500 gained for the seventh day in a row to notch its 37th record high of 2024. The benchmark index ended with gains of 1%. The Nasdaq also gained 1.2% for its 27th record high of the year. Anchored on the performance of tech stocks and spearheaded by chipmaker Nvidia (NVDA), it climbed by 2.7% on Wednesday, followed by TSMC’s 3.5% gains that surpassed its expected quarterly results. Apple’s (AAPL) stock also recorded gains in light of its ambitious goal to boost sales by 10% with the launch of Apple Intelligence and the iPhone 16.
Following Federal Reserve Chair Jerome Powell’s enthusiasm over interest rate cuts in September, the S&P 500 crossed 5,600 points. Thomas Martin, a senior portfolio manager at Globalt Investments in Atlanta, stated that “TSMC’s report supported the AI narrative, so that more than anything else today is a pretty important data point,” thereby driving up the frenzy surrounding the ‘Magnificent Seven’ in Wall Street. However, several investors seem to express their apprehension about an S&P 500 rally being trailblazed by select large-cap tech giants, predicting possible selloffs of these companies’ earnings if initial high expectations are not met.
All 11 S&P 500 sector indexes rose on Wednesday, led by information technology, up 1.63%, followed by a 1.34% gain in materials. The S&P 500 ended Wednesday’s session at 5,633.91 points with a 1.02% climb.
