It’s been a bad day for the stock market as a whole. This is well evidenced by the fact that leading tech stocks known as the “Magnificent 7” are all in the red. After a day of trending downward, none of these industry leaders look poised to recover. The Magnificent 7 stocks are far from the only companies that have taken a beating today. But when some of the most prominent mega-cap stocks are falling at the same time, it’s hard not to notice.
But this is just one of those days when most major forces are working against the market. Pressure is stemming from treasury yields that recently reached their highest point in over a decade. On top of that, Federal Reserve policymakers have made it clear that they believe interest rates are going to remain elevated, at least for the near future. These developments led to a selloff today that pushed entire indexes down, taking many stocks with them.
A Losing Day for the Magnificent 7 Stocks
Of all the Magnificent 7 stocks, Apple (NASDAQ:AAPL) is the only one down less than 1% today. All others range between 1% and 4% declines after a day of high volatility.
Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is down 1.3%, while Amazon (NASDAQ:AMZN) is down almost 4%. Nvidia (NASDAQ:NVDA) has declined by 2.8%, while Microsoft (NASDAQ:MSFT) is down by 2.6%.
Both Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA) are down roughly 2%.
As noted, these declines can be attributed to the combination of multiple forces pushing entire markets down. As Yahoo Finance reports:
“Hawkish comments by Fed policymakers reminded investors that resilience in the US economy likely means borrowing costs will stay higher for longer. Traders are now pricing in odds of 29% that policymakers will hike rates at their November meeting, compared with 16% a week ago, according to the CME’s FedWatch tool.”
There are, of course, company-specific reasons that the Magnificent 7 stocks are struggling today. Tesla is set to report third-quarter earnings on Oct. 18, but its recent Q3 deliveries miss has Wall Street concerned about its growth prospects. Concerns regarding declining consumer spending are currently working against Amazon. But ultimately, this is a day that will have to be written off as a losing day for markets due to an onslaught of negative macroeconomic forces.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
