Shares of the “Magnificent Seven” — a group featuring top tech giants like Nvidia, Apple, Amazon.com, Alphabet, Meta, Tesla, and Microsoft — have experienced declines since the previous Friday.
The Roundhill Magnificent Seven ETF, which closely follows these stocks, has fallen over 2.4% since June 5, with analysts suggesting that investors are repositioning themselves in anticipation of Elon Musk’s SpaceX launch on Friday.
SpaceX recorded a net loss of $4.94 billion in 2025, yet its groundbreaking listing aims for a valuation of $1.77 trillion in a historic IPO, potentially making it the seventh-largest publicly traded U.S. company by market capitalization.
Key insights from the JPMorgan note included:
• Selling pressure was observed on Magnificent Seven stocks as investors chose to reduce their risk exposure.
• Some traders seized the opportunity to buy on the dip.
• In the U.S., software stocks faced significant selling late last week, while semiconductor companies attracted “strong demand.”
• Financial-themed ETFs were the top performers in terms of purchases over the past week.
• Traditionally, financial stocks thrive during this season.
• Hedge funds exhibited mixed sentiments regarding financials, with certain funds selling off banks.
• Recently, hedge funds have shown interest in insurance company stocks, but the sector has been “heavily sold” this year, resulting in traders having considerably fewer positions in these firms compared to previous years.
• Traditional asset managers were preferred over alternative asset managers.
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(Edited by : Navneet Singh)
