Tech stocks led a market decline on Thursday, pulling the S&P 500 and Nasdaq back from record highs set just one day earlier. The so-called “Magnificent 7” grouping fell, with notable moves from Tesla (TSLA) and Apple (AAPL). Tesla’s stock reversed some of its prior 8% gain amid investor concerns over the cost of its new AI5 chip, while Apple faces a high-pressure earnings report amidst strong forecasts from analysts.
The “Magnificent 7” stock grouping declined on Thursday as tech stocks led the stock market lower. Out of the grouping, Tesla (TSLA) and Apple (AAPL) are most notable, as they had healthy climbs just one day prior.
Surging tech stocks carried the S&P 500 and Nasdaq composite to new records on Wednesday, a milestone in the indexes’ rebound from war-fueled losses. However, Thursday has seen a bit of a pullback.
On Thursday, Tesla stock fell, reversing some of its 8% gain from Wednesday’s session after shares were buoyed by CEO Elon Musk teasing the company’s AI5 chip. Bernstein analysts claimed the entire project would require capital spending of $5 trillion to $13 trillion, an almost unimaginable sum.
As for Apple (AAPL), its upcoming earnings report is seen as a high-pressure event. Analysts are bullish on the upcoming report, expecting a $100 billion buyback, 5% dividend increase, and product upgrades, including AI integration.
Furthermore, price forecasts ahead of the Apple Inc earnings report are already coming in hot. Bank of America recently raised Apple’s price target to $325, citing strong iPhone and Services growth.
