Magnificent Seven Lead the S&P 500 to Record Territory

January 22, 2024

Magnificent Seven Lead the S&P 500 to Record Territory Photo

The S&P 500 Index settled Friday at an all-time high, marking its first record close in more than two years.1 After the equity market rally appeared to be broadening out during the final two months of 2023, the Magnificent Seven stocks have reclaimed their leadership position this year. Even among the Magnificent Seven, the breadth is narrowing with Nvidia remaining the star performer — up more than 20% year-to-date.2 Tesla — one of the relative laggards among the Magnificent Seven this year — is set to report earnings this week.3

This week’s economic calendar will provide plenty of data for the data-dependent Federal Reserve (Fed) prior to its meeting next Wednesday. Our first look at fourth-quarter gross domestic product (GDP) and new home sales will be on Thursday. The Fed’s favorite inflation gauge — personal consumption expenditures (PCE) — will be out on Friday.4 Even though the majority of Fed policymakers have argued March is too soon to begin rate cuts, investors are placing the odds as a coin toss.    



1CNN Business – S&P 500 closes at record high for first time in two years; 1/19/24

2Investor’s Business Daily – Nvidia (NVDA); 1/22/24

3Yahoo! Finance – What to expect from the Magnificent Seven: Tesla, Microsoft, Alphabet, Apple, Meta, Amazon and Nvidia; 1/18/24

4MarketWatch – U.S. Economic Calendar; as of 1/22/24

Tags: S&P 500 | Earnings | Gross Domestic Product (GDP) | PCE | Interest Rates | Economic data

< Go to Monday Morning Perspectives

This blog post is for informational use only. The views expressed are those of the author(s), and do not necessarily reflect the views of Penn Mutual Asset Management. This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Any statements about financial and company performance of The Penn Mutual Life Insurance Company or its insurance subsidiaries (each, “Client”) made by the author is provided with a written consent from the Client.  Penn Mutual Asset Management is a wholly owned subsidiary of The Penn Mutual Life Insurance Company.

Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice.  The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete.  Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements.  Actual results may differ significantly.  Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.

Investing involves risk, including possible loss of principal.  Past performance is no guarantee of future results.  All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.

High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.

All trademarks are the property of their respective owners. This material may not be reproduced in whole or in part in any form, or referred to in any other publication, without express written permission.

Subscribe to Our Publications