J.D. Durkin breaks down the latest investing news as Wall Street looks to wrap up the quarter.
FULL VIDEO TRANSCRIPT BELOW:
J.D. Durkin: The first quarter of the year for investors is officially behind us, and many of the same names that brought the market to all-time highs last year are keeping up the momentum.
With such a big focus on artificial intelligence and the semiconductors that power it, a handful of key tech names dubbed the “Magnificent 7” have done much of the heavy lifting. So far in 2024, the S&P 500 is already up 9%, but it’s worth taking a look at how these household names specifically did in the first quarter, starting with Amazon.
Fueled by optimism over its cloud and ad services, the e-commerce giant is up 19% since the start of the year. Amazon is a key consumer discretionary name, and despite its gains it’s not even the strongest of the bunch.
That title goes to Nvidia, and believe it or not the stock for the semiconductor behemoth is up 86% in 2024. It is, simply put, one of the most remarkable stories in this bull market, making Nvidia now the third most weighted-name in the entire S&P 500.
Of course we can’t forget Meta, whose shares are up a whopping 41% since January 1st. Meta’s numbers in February were particularly optimistic after reporting huge quarterly earnings growth. Meta now has the 7th highest market-cap in the world.
And the company that boasts the largest market cap and the highest weight in the S&P isn't doing too poorly either. Shares of Microsoft were up 13% in the first quarter of the year, and are up more than 50% in the last 52-weeks. Analysts consensus on Wall Street Is that Microsoft remains a “strong buy.”
In the middle of the pack is google parent company Alphabet, whose stock is up 8% this year. The stock was able to hold onto gains in the first quarter despite reporting disappointing ad revenue. The company has helped pushed communication services stocks here for the year.
But not all magnificent 7 stocks are having the strongest start to their 2024... Apple has run into challenges with concerns over demand for the iPhone 15 and Apple Vision Pro. The stock fell 7% in the first quarter, significantly underperforming the broader market.
Then there’s biggest laggard of the bunch: Elon Musk’s Tesla. It’s a stock that has always been prone to swings in volatility, and 2024 is no different: down 27%. The EV carmaker has been unable to shake downtrodden earnings estimates, though is still the 12th largest company in the world by market-cap.
Due to the strength of a few key names, the Magnificent 7 is – for the most part – as magnificent as ever, helping to bring the stock market to new all-time highs.
