Magnificent (mi) 7's

Nasdaq had its worst day since October 2022 yesterday. While the loss in the market reached 1 trillion dollars, approximately 760 billion dollars of the loss was made up of large technology companies called the Magnificent 7.

So, what does this decline, especially in technology stocks, say?

👇

→ Technology stocks were suppressed as the balance sheets of Google's parent company, Alphabet and Tesla, presented a weak outlook for artificial intelligence. The biggest impact of this pressure was felt on the Magnificent 7's. At the end of the day, Nasdaq had its worst day since October 2022.

→ Against these declines, Borsa Istanbul VIOP evening session ended the day in the negative zone.

→ The fact that artificial intelligence expenses, which remain high on Google and Tesla's balance sheets, have a limited impact on revenues and the pressure on profit margins due to high costs has raised investors' doubts about artificial intelligence.

→ Alphabet CEO Pichai stated that they spent 13 billion dollars in capital expenditure in the last quarter and stated that the contribution of artificial intelligence technology on both the consumer and corporate side could be realized in the long term, increasing the concerns of investors.

→ While the declines caused the Magnificent 7, which rose rapidly with the support of the artificial intelligence rally, to correct, investors' attention shifted from large technology companies to small-capitalization companies.

→ The Russell 2000 index, which represents small-capitalization companies, had risen in recent weeks with expectations that the Fed might start reducing interest rates at its September meeting.

→ Compared to Nasdaq, which decreased by 3.64% and S&P 500, which decreased by 2.31% against yesterday's sales, Russell 2000's 2.13% loss in value can be considered positive for small-capitalization companies.

#Binance #Bitcoin #btc #Nasdaq

cc:@midasyatırım