The Magnificent Seven group of major technology stocks were gaining ground Wednesday after moving into correction territory on Tuesday as concerns about slowing growth and elevated valuations grew in the lead-up to 澳洲幸运5官方开奖结果体彩网:Nvidia’s quarterly earnings this afternoon. 

The Bloomberg Magnificent 7 Total Return Index had declined 10.7% from its all-time high on December 17, as of Tuesday’s close. The Roundhill Magnificent Seven ETF (MAGS), which is constructed differently than the Blo💦omberg indꦛex, had fallen more than 11% over that time. 

The ETF’s current slump is its third correction since it launched in April 2023. The first was a slow, shallow 12% slump from late July 2023 to late October of that year. The second was a sharp 18% drop that began amid a 澳洲幸运5官方开奖结果体彩网:rotation into small-cap stocks in mid-July and bottomed with the 澳洲幸运5官方开奖结果体彩网:yen carry trade rout of early August. 

Nvidia Results Com🧸e Amid AI, Earningsꦜ Uncertainty

The group rebounded slightly on Wednesday morning as Wall Street geared up for fourth-quarter earnings from AI chip giant Nvidia (NVDA) after the bell. The 澳洲幸运5官方开奖结果体彩网:AI bellwether’s results come amid growing anxiety on Wall Street about slowing earnings growth and the economics of AI, two driving forces behind the Magnificent Seve🦩n’s meteoric rise.

Earnings growth at Magnificent Seven companies, which has run in the double digits for much of the past two years, has begun to slow as year-over-year comparisons have become more challenging. At the same time, growth at the rest of the S&P 500, or “the Other 493,” is accelerating—albeit, from a low base. 

The Magnificent Seven-led AI trade has also hit a speed bump this year. Chinese start-up DeepSeek rattled Wall Street late last month with an open-source model it said matched the performance of leading American models at a fraction of the cost. The revelation prompte𓆉d investors to question the utility of the Magnificent Seven’s massive investments in AI infrastructure. 🔯;

Many Wall Street and Silicon Valley denizens have since argued that DeepSeek’s threat to American tech has 澳洲幸运5官方开奖结果体彩网:been overblown. Tech giants have mostly stood by their aggressive AI spending plans and signaled demand for AI remains robust. Nonetheless, tech stocks have yet to recover from their 澳洲幸运5官方开奖结果体彩网:DeepSeek sell-off.