The fourth week of risk-off correction ended on a solid positive note, just like the fourth week of correction from August till October 2023. See Figure 1.
And the winner of the current correction is Magnificent 7 (counting from the peak on the S&P500, i.e. from March 28 to April 26) and the Mag7 Index is only 0.17% down. Figure 2.
Of course, this is due to the first two correction weeks of positive returns (unlike the S&P500, Nasdaq100 and Russell2000) and a strong rebound after the very good earnings of Alphabet, Microsoft, as well as the strong rebound of Tesla. Nvidia benefits from ever-increasing spending on computing infrastructure, which is necessary to develop and train all AI models.
Weekly returns (April 19-26):
Mag7 +5.27%
Nasdaq100 +3.99%
Russell2000 +2.79%
S&P500 +2.67%
Nvidia +15.14%
Tesla +14.48%
Alphabet +11.58%
Novo Nordisk +3.38%
Amazon +2.86%
Microsoft +1.80%
Apple +2.65%
Meta -7.85%
Figure 3 shows weekly changes for the above indices.
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