Mega-cap tech remains king
Mega-cap tech remains king: Sevens Report Co-Editor, Tyler Richey, Quoted in S&P Global
Magnificent 7 stocks stumble, boosting peak views
All seven stocks were largely rebounding Aug. 6 as “mega-cap tech remains king” within the larger technology sector, said Tyler Richey, a co-editor with Sevens Report Research.
“The relative resilience by the Magnificent Seven suggests that investor demand for tech exposure remains concentrated in those seven mega-cap names … while the rest of the space is seeing some technical cracks emerge as bullish conviction for the rest of tech is starting to fade,” said Richey.
Richey said he expects these mega-cap tech stocks to attempt to revisit their all-time high soon, as these stocks tend to be favored by portfolios looking for long exposure in the market at times of high cyclical risks.
“As long as the market is pricing in gradual rate cuts in the quarters ahead, optimism in support of the soft landing narrative would likely see mega-cap tech continue to lead the market as the Mag-7 names account for a significant amount of the expected S&P 500 earnings growth in the quarters ahead,” Richey said.
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