The breathtaking performance of the US stock market in 2023: Why the Magnificent Seven promise a strong 2024 - despite possible lower profits!

The breathtaking performance of the US stock market in 2023: Why the Magnificent Seven promise a strong 2024 - despite possible lower profits!

According to a report by www.wallstreet-online.de, the S&P 500 and Nasdaq Composite posted significant gains in November 2023, led primarily by major tech companies such as Apple, Amazon, Alphabet, Meta Platforms, Microsoft, Nvidia and Tesla, also known as the “Magnificent Seven”.

These companies make up over a quarter of the S&P 500's market capitalization and have largely influenced the rally of the index and the Nasdaq. According to Hubert de Barochez of Capital Economics, the MSCI USA Index is up almost 20 percent this year, while the MSCI All Country World Index excluding the U.S. is only up about seven percent. This performance is mainly due to the sectors represented by the “Magnificent Seven”.

De Barochez predicts that the US stock market will continue to outperform in the coming years, despite possible economic difficulties. He expects any economic slowdown to be mild and brief, with little impact on the Magnificent Seven. His conclusion is that US technology stocks, driven by growing interest in artificial intelligence, could continue to outperform the broader market.

It is important to note that De Barochez's forecasts depend on various factors, including the development of the global economy, political decisions and potential external risks. If these factors occur, the impact on the US stock market and the “Magnificent Seven” in particular could be significantly different.

Overall, the continued performance of the “Magnificent Seven” and their influence on the US stock market will depend on a variety of factors that must be carefully monitored and analyzed.