{"id":12901,"date":"2023-08-18T23:12:30","date_gmt":"2023-08-18T23:12:30","guid":{"rendered":"https:\/\/isafespend.com\/investing\/metas-stock-joins-apple-microsoft-and-nvidia-shares-in-correction-territory-as-tech-stock-boom-fizzles\/"},"modified":"2023-08-18T23:12:31","modified_gmt":"2023-08-18T23:12:31","slug":"metas-stock-joins-apple-microsoft-and-nvidia-shares-in-correction-territory-as-tech-stock-boom-fizzles","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=12901","title":{"rendered":"Meta\u2019s stock joins Apple, Microsoft and Nvidia shares in correction territory as tech-stock boom fizzles"},"content":{"rendered":"
\n

The so-called Magnificent Seven grouping of technology stocks is looking less magnificent lately, with Meta Platforms Inc. joining several of its peers in correction territory. <\/p>\n

Meta
\n META,
\n -0.65%<\/bg-quote>
\n on Thursday followed Apple Inc.
\n AAPL,
\n +0.28%<\/bg-quote>,<\/span>
\n Microsoft Corp.
\n MSFT,
\n -0.13%<\/bg-quote>
\n and Nvidia Corp.\u00a0
\n NVDA,
\n -0.10%<\/bg-quote>
\n into correction, meaning their shares have fallen at least 10% from their recent peaks. Meanwhile, Tesla Inc.\u2019s
\n TSLA,
\n -1.70%<\/bg-quote>
\n stock is in a bear market, down more than 20% from its recent high. <\/p>\n

\n

Read<\/strong>: Have AI stocks like Nvidia reached bubble territory? Here\u2019s what history can tell us.<\/p>\n

Only Amazon.com Inc.
\n AMZN,
\n -0.57%<\/bg-quote>
\n and Alphabet Inc.
\n GOOG,
\n -1.80%<\/bg-quote><\/p>\n

GOOGL,
\n -1.89%<\/bg-quote>
\n shares remain in bull-market territory.<\/p>\n

See also<\/strong>: U.S. stocks pare losses as rising bond yields weigh on \u2018Magnificent 7\u2019 stocks<\/p>\n

The retreat in Meta shares looks like \u201csomewhat of a mean reversion\u201d given their strong run this year, according to Matt Stucky, senior portfolio manager for equities at Northwestern Mutual Wealth Management. <\/p>\n

Even with recent declines, Meta\u2019s stock is the second-best performer in the S&P 500 so far this year, up 137% during 2023. <\/p>\n

\u201cWhen the overall market pulls back, you start to see some of the winners mean-revert more aggressively,\u201d Stucky told MarketWatch.<\/p>\n

Apple entered correction Wednesday upon falling more than 10% from its July 31 peak of $196.45. The company sells mainly discretionary products, and right now \u201cconsumers are still being pinched\u201d and thinking more carefully about where they spend their money, he noted.<\/p>\n

Don\u2019t miss<\/strong>: Walmart customers\u2019 household budgets still under pressure, CEO says<\/p>\n

Additionally, the company does about 20% of its business in China, where recent economic signals have been concerning, he added. <\/p>\n\n\n\n\n\n\n\n\n\n
\n Stock<\/strong><\/p>\n<\/td>\n\n Correction status<\/strong><\/p>\n<\/td>\n\n Details<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n Alphabet<\/p>\n<\/td>\n\n Bull market<\/p>\n<\/td>\n\n Would need to close below $119.45 to enter correction<\/p>\n<\/td>\n<\/tr>\n
\n Amazon<\/p>\n<\/td>\n\n Bull market<\/p>\n<\/td>\n\n Would need to close below $128.00 to enter correction<\/p>\n<\/td>\n<\/tr>\n
\n Apple<\/p>\n<\/td>\n\n Correction<\/p>\n<\/td>\n\n Entered correction Wednesday when it fell from its July 31 peak of $196.45. It will enter a bear market at $157.16.<\/p>\n<\/td>\n<\/tr>\n
\n Meta Platforms<\/p>\n<\/td>\n\n Correction<\/p>\n<\/td>\n\n Entered correction Thursday when it fell from its July 28 peak of $325.48.<\/p>\n<\/td>\n<\/tr>\n
\n Microsoft<\/p>\n<\/td>\n\n Correction<\/p>\n<\/td>\n\n Entered correction Aug. 9 when it fell from its July 18 peak of $359.49. Will enter bear market at $287.59.<\/p>\n<\/td>\n<\/tr>\n
\n Nvidia<\/p>\n<\/td>\n\n Correction<\/p>\n<\/td>\n\n Entered correction Aug. 9 when it fell from its July 18 peak of $474.94. Will enter a bear market at $379.95.<\/p>\n<\/td>\n<\/tr>\n
\n Tesla<\/p>\n<\/td>\n\n Bear market<\/p>\n<\/td>\n\n Entered a new bear market on Aug. 15<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

The Magnificent Seven had been beneficiaries of three key investment trends for most of 2023, according to Stucky, as the market was upbeat about easing inflation, an end to interest-rate hikes and the potential of artificial intelligence. <\/p>\n

Investors who became less worried \u201cabout the Fed continuing to hike rates into oblivion\u201d wanted quality companies that were growing, protecting margins and delivering good shareholder returns, even if their stocks carried richer multiples, Stucky said. However, it\u2019s a \u201cnormal function of markets to ebb and flow\u201d when sentiment is elevated, as it was in July.<\/p>\n

The declines in Big Tech names mirror weakness in the sector more broadly after a sharp run-up to start the year. As of late July, the Nasdaq-100
\n NDX
\n was trading 26% above its 200-day moving average \u2014 \u201ca statistical extreme,\u201d according to CFRA chief investment strategist Sam Stovall. <\/p>\n

Tech stocks were \u201clike an army that had gotten well ahead of its supply lines,\u201d he told MarketWatch. In that scenario, an army \u201chas to either retreat or let supplies catch up.\u201d <\/p>\n

The current quarter is the most challenging of the year, Stovall said, and August is one of the most challenging months. In addition, there is uneasiness on Wall Street as investors wait to see what the Federal Reserve will do with interest rates. <\/p>\n

\u201cThere\u2019s so much uncertainty as it relates to interest rates with yields on the 10-year note continually climbing,\u201d Stovall said. \u201cInvestors are saying it\u2019s time to take profits, and the greatest profits were seen in tech.\u201d <\/p>\n

There could be more room to fall for tech stocks on the whole, according to Stovall. While the S&P 500
\n SPX
\n may not drop 10% from its recent peak, the Nasdaq
\n COMP
\n could see a \u201cfairly mild correction\u201d as this period of seasonal weakness continues through the end of September. <\/p>\n

Still, he sees some encouraging signs in a hawkish-leaning Fed, which could raise rates in September but make that hike the last for this cycle. <\/p>\n

\u201cThat would set us up quite nicely for a typically favorable fourth quarter,\u201d Stovall said. <\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The so-called Magnificent Seven grouping of technology stocks is looking less magnificent lately, with Meta Platforms Inc. joining several of its peers in correction territory. Meta META, -0.65% on Thursday followed Apple Inc. AAPL, +0.28%, Microsoft Corp. MSFT, -0.13% and Nvidia Corp.\u00a0 NVDA, -0.10% into correction, meaning their shares have fallen at least 10% from<\/p>\n","protected":false},"author":1,"featured_media":12902,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"class_list":{"0":"post-12901","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"yoast_head":"\nMeta\u2019s stock joins Apple, Microsoft and Nvidia shares in correction territory as tech-stock boom fizzles | iSafeSpend<\/title>\n<meta name=\"description\" content=\"The so-called Magnificent Seven grouping of technology stocks is looking less magnificent lately, with Meta Platforms Inc. joining several of its peers in\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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