good morning. While some people are worried about the boom in the U.S. stock market, the Magnificent Seven may not be so expensive after all. Additionally, there are big bets that market calm and the unstoppable crypto market may emerge victorious in London. Here's what people are talking about: — Sophia Horta e Costa
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There is much debate about what will happen to the U.S. stock market going forward. My colleagues Alexandra Semenova and Matt Turner dug into the data to see what the evidence suggests. Some of their charts may dispel concerns about bubble formation. That is, the fact that the equal weighted version of the S&P 500 just broke records indicates that the rally is not as concentrated as feared. JPMorgan's strategy team weighed in as well, noting that the so-called Magnificent Seven stocks (a group that includes Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia, and Tesla) are actually doing better relative to the market than they were five years ago. He pointed out that it was undervalued. Morgan Stanley's Michael Wilson, who has been a bearish voice on Wall Street, says the burden now is on improving earnings to support stock prices. Meanwhile, the Barclays team says investors should consider selling Treasuries after an “excessive” rally. As I type, S&P 500 futures are down about 0.4%, while Treasuries are flat.
