U.S. stock-market direction is hanging on the performance of Big Tech ringleader, Microsoft Corp., which must hold on to new highs.
And if Microsoft MSFT, -1.10% can’t maintain new highs, the “equity and credit narrative could flip from ‘buy-the-dip’ in H1 [first half of 2023] to ‘sell-the-rip’ in the second half of year,” said the strategists, who provided the below charrt: The so-called Magnificent Seven stocks, named as such for helping drive a stock rally in the first half of the year, also include Meta META, -3.13%, which on Thursday followed Microsoft MSFT, -1.10%, Apple Inc. AAPL, -1.46% and Nvidia Corp. NVDA, -0.33% into correction territory, implying shares have lost at least 10% from their recent peaks. Also in the seven is Tesla Inc. TSLA, -2.83% which is now in a bear market, down more than 20% from its recent high.