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Can Stocks Stabilize After Yesterday's Beating?
Nasdaq has worst day since Oct. 2022
Danny Riley
July 25, 2024
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Our View
If you're surprised by the U-turn, I don't think you should be. The new reality is that lower rates have prompted a shift out of the Nasdaq (tech) and into small caps. Just one company among the 'Magnificent 7' has a market cap larger than the entire Russell 2000 total market capitalization.
Clearly, big institutional accounts have been selling off the NASDAQ over the past two weeks, and the deluge of negative news served as yesterday's catalyst for the drop. According to Dow Jones Market Data, the Magnificent Seven stocks collectively lost $768 billion in market value, marking the largest such wipeout on record since Meta Platforms went public as Facebook in 2012.