The so-called Magnificent Seven lost some luster in the latest quarter, as they proved no longer the big market drivers they were earlier this year. The seven largest tech stocks — Apple Inc.
and Meta Platforms Inc.
— could perhaps better be known as the “messy seven” after a third-quarter performance that was far less correlated with the S&P 500
than what was seen in the second quarter.
From the archives (July 2023): These 7 momentum stocks ignited the market. Look out when they start to fall. Four members of the Magnificent Seven — Alphabet, Meta, Nvidia and Amazon, outperformed the S&P 500’s 3.6% decline in the third quarter, and among those, all but Amazon’s stock logged gains. Shares of Tesla, Microsoft and Apple each posted declines and lagged the index.
The seven stocks had an average 0.47 correlation with the S&P 500 during the third quarter, which is seen as a modest correlation. That’s notable because the Magnificent Seven make up a large portion of the market-weighted S&P 500, constituting 29.4% of the index’s total market cap as of Thursday’s close, according to Dow Jones Market Data. See also: September’s U.S. stock-market rout left just 1 winner as defensive sectors failed to provide shelter I …