Risk-off Update

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%