2023 Annual Review: 2024 US Stock Outlook and the Future of the Magnificent Seven - Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla.

2023 Annual Review: 2024 US Stock Outlook and the Future of the Magnificent Seven - Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla.

According to a report by ch.marketscreener.com Fund managers may face a momentous decision in 2024. The so-called Magnificent Seven — Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla — were up between 50% and 240% in 2023 and accounted for nearly two-thirds of the S&P 500's 24% rise that year. While the Federal Reserve's expected cut in interest rates and avoidance of a recession may encourage fund managers to continue investing in these stocks, there are signs that the rally is spreading to other parts of the market.

Impact on the market:
1. Stock market: A bad year for the Magnificent Seven could lead to a slowdown in the broader market if other stocks can't pick up the slack. A possible rotation into small or mid-cap technology stocks in 2024 could change the market landscape.
2. Investor behavior: Fund managers may be faced with the decision of whether to continue investing in the big growth and technology stocks or in other parts of the market.

The analysis shows that the Magnificent Seven's dominance of the major indices means they are widely held by mutual funds and ETFs and could benefit as money flows into stocks from the sidelines. It could be a profound opportunity for investors to diversify their portfolio more broadly as markets are expected to become more volatile, particularly in the run-up to the US presidential election in November.