With 2023 posting solid numbers in the stock market, the beginning of this year doesn’t look too promising, with the Nasdaq index losing hundreds of billions in market capitalization in just a couple of hours.
The Nasdaq Composite has experienced a decline of almost 4% within the past three trading days, eliminating approximately $600 billion in market capitalization.
This downturn has erased all gains since December 13 and led to the ‘Magnificent Seven,’ a group of influential technology stocks decreasing by approximately 5% from their recent highs last week.
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The resurgence of the ‘Magnificent Seven’ as key drivers of the overall market suggests a renewed dependence on these stocks, emphasizing their continued impact on market dynamics. As a consequence, heightened volatility could be anticipated in the near future.
‘Magnificent Seven’ dependency as potential reason for loss
On Tuesday, Apple’s shares experienced a decline exceeding 2.3% in premarket trading following a downgrade by Barclays analysts, who lowered the price target to $160. The predominant factor influencing this bearish shift was an unfavorable sales outlook for the iPhone and other hardware products within the Apple portfolio.
How much of an impact the decrease in target price of Apple shares by analysts and FOMC meeting notes release had on the Nasdaq performance is hard to say, considering that the other members of the ‘Magnificent Seven’ are trading in the green. Nevertheless, investors are worried, and it is showing on the charts.