[Moo Brief] Nasdaq & magnificent 7 slip: Right time to buy low and wait for the rebound?
As of the close of July 11, $S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ dropped by 0.88% and 1.95%, respectively. Among them, large technology stocks declined collectively. The "Magnificent 7" of the US stock market suffered the biggest selling pressure in nearly a year, with a total market value of $598.8 billion evaporating.
$Tesla (TSLA.US)$ closed down by 8.44%, ending the previous 11 consecutive trading days of a rising trend. $NVIDIA (NVDA.US)$ sank by more than 5.5%, $Meta Platforms (META.US)$ diminished by more than 4.1%, $Alphabet-A (GOOGL.US)$ slipped by 2.9%, Microsoft decreased by 2.5%, and $Amazon (AMZN.US)$ and $Apple (AAPL.US)$ shrank by more than 2.3%. In contrast, $Dow Jones Industrial Average (.DJI.US)$ fluctuated and finally closed slightly higher.
⧉ Macro level: Capital transfer -- Small-cap stocks with low valuations benefited from the expectation of rate cuts
![[Moo Brief] Nasdaq & magnificent 7 slip: Right time to buy low and wait for the rebound?](https://ussnsimg.moomoo.com/sns_client_feed/77777022/20240712/1720777491497-afd62cc3e3.jpeg/big?area=103&is_public=true)
The US CPI data in June fell MoM for the first time in four years, easing inflation and boosting expectations of rate cuts. This upcoming low interest rate environment, with lower investment costs, is favorable for the capital market. Consequently, some investors are selling large-cap technology stocks, perceived as "stable," and turning to small-cap stocks with smaller market capitalization.
![[Moo Brief] Nasdaq & magnificent 7 slip: Right time to buy low and wait for the rebound?](https://ussnsimg.moomoo.com/sns_client_feed/77777022/20240712/1720768353974-decfa60fd2.png/big?area=103&is_public=true)
Hence $Russell 2000 Index (.RUT.US)$, composed of small-cap stocks, expanded its intraday gains on July 11 and closed up 3.6%, the best single-day performance since November 2023. Many investors are scouring the small-cap market for hidden gems that could become the next giant like Nvidia, attracted by the low valuations and potential for high returns.
⧉ Micro level: Tesla's delay of Robotaxi launch triggers stock decline
$Tesla (TSLA.US)$ closed down 8.44% on July 11, and continued to fall by 1.86% to $236.54 in the night trading of Eastern Time at 11:28 pm.
$Tesla (TSLA.US)$’s decrease may arise from the plan to postpone the release of the driverless taxi Robotaxi from August to October so that the project team has more time to build more prototypes. $Tesla (TSLA.US)$'s competitors Uber and Lyft saw their stock prices rise by 5.3% and 7.9%, respectively, after the news broke. $Tesla (TSLA.US)$'s Robotaxi project has been delayed since 2015, and despite Musk's promises to launch it for years, no tangible results have been achieved. By contrast, Baidu's driverless taxi project "Carrot Run" gained popularity in July, while Alphabet's Waymo and General Motors' Cruise continue to advance their autonomous vehicle initiatives.
Buying the dip is usually a good time to add to your position. However, given the constantly changing macroeconomic conditions and individual company news, investors should combine technical analysis with qualitative analysis to thoroughly explore their targets. For example, you can explore a company's quarterly earnings, annual earnings, new products, supply and demand, leadership, institutional ownership, market direction, etc.
As an investor, which Magnificent 7 stocks would you consider buying during this period? Please drop your answer with reasonable comments, and you will receive 150 points. ![]()
Meanwhile, do not forget to win a cash rebate on your first deposit through our [Cash Plus Promotion]
Meanwhile, do not forget to win a cash rebate on your first deposit through our [Cash Plus Promotion]
![[Moo Brief] Nasdaq & magnificent 7 slip: Right time to buy low and wait for the rebound?](https://ussnsimg.moomoo.com/sns_client_feed/77777022/20240718/1721289074597-e9fe0b9d4e.jpeg/big?area=103&is_public=true)
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102362254 : Among the Magnificent 7 stocks, I'd consider investing in Microsoft, which has a strong track record, a diverse portfolio including software and gaming, and a stake in artificial intelligence through OpenAI. Microsoft's market cap is currently around $3.38T
mr_cashcow : Yes buying the dip is a legit strategy but of course u will need to do your own due diligence and research before jumping it! The magnificent 7 have a good and long track record so if done correctly there will definitely be earning opportunities! They have products & services that are used widely by the masses and are not going anywhere anything soon so looking at the support and resistance is one way to go![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
74626089 : While the "Magniifcent 7" stokc have historically provided stron returns, it's essential to consider the current market conditions, company-sepcific factors, and our investiment strategy. If these companys align with our investiment goals and I believe in their long-term gwowth potential, it might be a good time to ivest. However, it's always witse to do thorough research to tailor our invest decisions.
Meme_Short_Queen : All I can see is nothing but tech bubbles bubbles bubbles