Apple leads US$383 billion tech rout in reversal from group’s 2023 rally
- The Magnificent Seven surged more than 100 per cent last year, driven by a frenzy in artificial intelligence, gains cooled in the second half of 2023
- Though Tesla said it delivered more electric vehicles in the fourth quarter than analysts expected, the company lost its place as top seller of EVs to China’s BYD
The largest technology stocks that lifted the broader market last year are having a less-rosy start to 2024.
The so-called Magnificent Seven, which includes Apple, Amazon.com, Alphabet, Microsoft, Meta Platforms, Tesla and Nvidia, slipped for the last four trading days, the longest losing streak in a month, according to the Bloomberg Magnificent 7 Price Return Index.
Shares of Apple, down 4.6 per cent in the time period, lead the slump that has erased US$383 billion in market value. The Nasdaq 100 Index has also fallen in the last four trading days.
“We don’t know if last year’s rally has fully ended, but it is completely normal to expect markets will pull back after a rally like we saw,” said Steve Sosnick, chief strategist at Interactive Brokers Group. “Without the year-end factors that turbocharged the rally, I think we’re seeing the party winding down.”
It is a signal that investor doubts over the sticking power of the 2023 rally were well-placed.