That $1.3 trillion came and went in less than a month, and people didn’t really notice — amazing.
By Wolf Richter for WOLF STREET.
The “cycle” promoted largely by continued technical selling and small caps faded this week: the S&P 500 fell 2.0%, the Nasdaq Composite fell 3.6%, the Nasdaq 100 fell 4.0%, and the Magnificent 7 fell 4.7%.
But the Russell 2000, which tracks nearly 2,000 small-cap stocks, rose 5.3% in the first two days of the week as part of a “spin” into small stocks, then fell 3.5% over the remaining three days of the week. , and ended the week up 1.7%, about where it was in February 2021.
Mac 7 Another $113 billion in market value was lost on Friday, bringing the total decline from the July 10 peak to $1.32 trillion (-7.7%). That $1.32 trillion came and went in one month, spread across seven stocks, and people didn’t really notice — which is amazing when you think about it. That was some serious money.
Their combined market capitalization is now $15.69 trillion, down from $17 trillion on July 10. The Mac 7 is now back where it was originally on June 13. This $1.32 trillion surpassed the dollar decline in April ( -$1.13 trillion ) but the 7.7% drop still did not measure up to April’s drop of 8.1%.
Individual stocks’ declines in Mac 7 from their July 10 peak (NVIDIA rose on Thursday, but fell again on Friday):
- Apple [AAPL]: -3.6% (-$129 billion)
- Microsoft [MSFT]: -6.3% (-$217 billion)
- letters [GOOG]: -6.9% (-$164 billion)
- Amazon [AMZN]: -8.3% (-$173 billion)
- Tesla [TSLA]: -9.2% (-$78 billion)
- Meta [META]: -10.8% (-$146 billion)
- Nvidia [NVDA]: -12.3% (-$410 billion).
Over the past 12 months, percentage-wise, two stand out among Mag 7:
- Nvidia is still up 150% in 12 months, despite recent declines (red line in chart below).
- Tesla is down another 18% in 12 months, and is down 42% at an all-time high in February 2021 (green).
The remaining 5 Max’s 12-month gains are dwarfed by Nvidia’s 150% gain, though they’re still steep after recent declines:
- Meta: +50.9%
- Letters: +46.1%
- Amazon: +35.3%
- Microsoft: +23.1%
- Apple: +15.0%.
Small stocks On Wednesday, July 17, after their sudden glory, the entire market will “spin” into them, or whatever.
The Russell 2000 gained 11.5% in the five trading days between July 9 and July 16. On Wednesday, the index began to decline, and on Friday, it fell 3.5% from Tuesday’s peak. But thanks to a 5.3% spike in the first two days of the week, the index still rose 1.7% for the week.
Russell 2000 is back to February 2021 at 2,184. That kind of sudden spike and drop doesn’t ease our worries, of course.
Nasdaq 100 IndexThe Nasdaq, which tracks the 100 largest financial stocks and is dominated by large technology and social media stocks, fell 4.0% for the week and is down 5.6% from its July 10 peak.
Year-to-date, the index is up 16% despite two sell-offs. The first in April ended with a 6.2% drag.
Since the start of 2021, the index is still up 51.5%, with a big trough in the middle. It is up 88% from the bottom of the tank in December 2022. That lurch toward these dizzying heights does nothing to assuage our concerns:
S&P 500 The first impact of the technical drama is just beginning to show. So far sales have been down. The index fell 2% for the week and was off 2.9% from Tuesday’s high.
Since the start of 2021, the index has risen 47%. Since the bottom of the trough in October 2022, the index has risen 53%. These are huge quick gains on top of already very high valuations, and the downside so far is almost nothing:
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