From Morningstar: 2025-05-09 04:29:00

The “Magnificent Seven” tech stocks have driven the market’s recovery, climbing nearly 14% since April 8. Big Tech offers structural advantages and is seen as a safe haven for investors. The tech sector contributed 5.8 percentage points to the market’s 13.8% gains, outperforming old economy stocks like healthcare and financials.

Strategists believe the resurgence of the Magnificent Seven was fueled by strong earnings, low debt, and a secular AI tailwind. Companies like Microsoft and Apple delivered positive guidance despite trade uncertainties. Retail investors are drawn to the group’s history of outperformance, leading to a “buy tech” philosophy in both good and bad markets.

Moving forward, investors may shift focus to value, quality, and international markets as challenges like valuation pressure and tech’s premium over the market persist. With more volatility expected, overweighting value stocks and underweighting growth stocks may be prudent. Trade negotiations and market turbulence could extend for a few more months, influencing investment strategies. 1. The stock market saw a significant jump with the Dow Jones Industrial Average closing at a record high of 35,000 points, driven by strong corporate earnings reports and positive economic data.

2. The latest unemployment figures show a decrease in jobless claims to 360,000, the lowest level since the start of the pandemic. This signals a recovering labor market as businesses continue to reopen and hire new workers.

3. In international news, tensions rise between China and the United States as the Chinese government rejects a WHO plan for a second phase investigation into the origins of COVID-19, sparking concerns about transparency and cooperation in the global fight against the pandemic.

4. Scientists discover a new species of dinosaur in Argentina, named “Llukalkan aliocranianus”, which had a unique skull shape and large teeth that suggest it was a fierce predator. This finding sheds light on the diversity of dinosaurs that roamed the Earth millions of years ago.

5. The Tokyo Olympics kick off with a spectacular opening ceremony, featuring performances highlighting Japanese culture and traditions. Despite the ongoing challenges of the pandemic, athletes from around the world come together to compete in a spirit of unity and sportsmanship.



Read more at Morningstar: The Magnificent Seven Are Leading the Stock Market…