Markets
Stock Markets Today: Magnificent Seven, S&P 500, Bitcoin, Crypto, Inflation
Good morning. The booming US stock market is making some people nervous, but maybe the Magnificent Seven isn’t so expensive after all. Plus, there’s a big bet on market calm and unstoppable crypto markets could score a win in London. Here’s what people are talking about. — Sofia Horta e Costa
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There is so much debate about whether the US stock market is overheating that my colleagues Alexandra Semenova It is Matt Turner dug into the data to see what the evidence suggests. Some of his graphs may allay concerns about a bubble formingthat is, one that shows an equal-weighted version of the S&P 500 that just hit a record high—an indication that the rally is not as concentrated as feared. JPMorgan’s strategy team also weighed in, noting that the so-called Magnificent Seven stocks—a group that includes Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia and Tesla—are actually cheaper relative to the market than they were five years ago. Morgan Stanley’s Michael Wilson, who was a low voice on Wall Street says the burden now is on improving earnings to sustain gains in stocks. Meanwhile, the Barclays team says investors should consider selling U.S. government bonds after an “excessive” rally. S&P 500 futures are down about 0.4% as I write, while Treasuries are flat.