Piper Sandler warns that the "Magnificent Seven" rally "may be over" and is shifting its focus to the healthcare and financial sectors
Craig Johnson, chief market technologist at investment bank Piper Sandler, said that the rally in “Magnificent Seven” stocks “may be over” and that the market is shifting toward the healthcare and financial sectors.Johnson noted that Piper Sandler has been reducing its exposure to technology stocks since February. He cited Microsoft (Microsoft)’s short position—which has reached an 11-year high—and NVIDIA (Nvidia)’s revenue growth of 85% despite a year-to-date stock price increase of only 6% as examples of this shift.Over the past week, the Invesco QQQ Trust (QQQ), which tracks technology stocks, fell 4.72%, while funds in the healthcare and financial sectors rose.
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