The Magnificent Seven stocks diverged in early afternoon trading Wednesday, putting the S&P 500’s modest gain in jeopardy.
The S&P 500 was up just 0.1% shortly after 2 p.m. ET. The Nasdaq Composite was also off its highs of the day but still nursing a 0.7% gain. The Dow was down 252 points, or 0.6%.
Alphabet and Apple continued to lift the S&P and Nasdaq in the wake of a court decision that will allow the former to pay the latter to make Google the default search engine on iPhones despite antitrust worries. Tesla was also up 2.8%, but the rest of the Mag 7 stocks were struggling to hold on.
Meta Platforms was flat, while Amazon.com was down 0.2%. Nvidia and Microsoft were down 0.4%. Together, the Roundhill Magnificent Seven ETF was still up 2.2% but heading in the wrong direction.
The rest of the stock market was struggling: Eight of the 11 major S&P 500 sectors were down on the day. The only trading strategies really working were those that tapped into Alphabet and Apple like growth. Funds offering risk, dividend, and value stocks were struggling the most, followed by momentum, and small-caps.
The bond market continued to rebound from its Tuesday morning slide: The yield on the 10-year Treasury note was down to 4.21%, while the 30-year yield was down to 4.9%.
