Drop in Magnificent Seven could drag down U.S. stocks, top fund manager says

U.S. stocks could drop by between 10% and 13% this year, dragged down by a selloff in seven mega-cap stocks that previously pushed broader markets to record highs, a senior executive at Morgan Stanley Investment Management told Reuters.

“We will begin to see the convergence between the rest of the market and mega 7, and that will continue,” said Kandhari. MSIM manages $1.5 trillion in assets. “If we have earnings growth that surfaces, then that number can go up,” Kandhari said. “But given current traction, 16.5 to 17 times is a good number on the S&P.”

Industrial stocks are currently attractive, Kandhari said. Shares of companies producing consumer staples and discretionary goods are also appealing, given Americans’ resilient spending.

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Morgan Stanley’s Wilson Says a 10% Stock Market Correction Is ‘Highly Likely’(Bloomberg) -- Traders should brace for a significant pullback in the stock market as uncertainty swirls around the US presidential campaign, corporate...
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Morgan Stanley’s Wilson Says a 10% Stock Market Correction Is ‘Highly Likely’Traders should brace for a correction in the stock market as uncertainty swirls around the US presidential campaign, corporate earnings and Federal Reserve policy, according to Morgan Stanley’s Mike Wilson.
La source: BNNBloomberg - 🏆 83. / 50 Lire la suite »

Stock market today: Wall Street holds steadier a day after big drop in tech stocksNEW YORK (AP) — Wall Street is holding steadier following the worst day for big technology stocks since 2022. The S&P 500 was up 0.2% in early trading Thursday, and the Nasdaq composite was up 0.6%.
La source: SooToday - 🏆 8. / 85 Lire la suite »