The Stock Market’s Recovery Slows Down as the Magnificent 7 Underperforms

The stock market rallied sharply on Friday, and many investors were expecting the recovery rally to continue. However, the momentum slowed down considerably today. This was mainly due to macroeconomic factors, as retail data came in lower than expected, and investors are still worried about the AI narrative.

Most Magnificent 7 stocks outperformed on the way up during the market rally, but the opposite seems to be the case now. The rest of the market seems to be catching up. The Mag 7 stocks bore the brunt of the selloff but are now underperforming during the small recovery today.

Here is a market update as of 4:00 PM (ET) today.

• The S&P 500 rose 36.18 points, up 0.64%.
• The Nasdaq Composite rose 54.57 points, up 0.31%.
• The Dow Jones Industrial Average rose 353.44 points, up 0.85%.

Big-Cap Stocks Have Lagged

As you can see on the above heatmap, most stocks have made solid progress in their recovery today. The only stocks that are almost flat or red today are the Magnificent Seven stocks. Some chip stocks like AMD (NASDAQ: AMD) and Intel (NASDAQ INTC) also recovered considerably. AMD rose 3.59% due to reaching 45% GPU market share in Japan, and Intel rose 6.82% as Wall Street is bullish on its new CEO Lip-Bu Tan.

• Tesla (NASDAQ: TSLA) stock tumbled 4.79% today. This is due to Mizuho analysts led by Vijay Rakesh lowering their price target by $85 to $430. Some are also attributing this drop to YouTuber Mark Rober’s recent video that showed Tesla vehicles underperforming vs. LIDAR cars from Luminar (NASDAQ: LAZR). LAZR stock gained 27.13% today due to that video.
• Oracle (NYSE:ORCL) rose 3.18% today due to rumors of a TikTok deal.
• Netflix (NASDAQ: NFLX) rose 3.49% today and was among the best-performing names on Wall Street today as analysts at MoffettNathanson upgraded it to “buy” from “neutral” and said that it won the streaming wars. The stock broke above $950.

Top Five Gainers Today

Today’s gains were mostly driven by smaller companies. This includes routine biopharma breakthroughs, along with rallying quantum computing stocks.

• Scienture Holdings Inc (NASDAQ: SCNX) is up 66.44% today as it recovers sharply from a previous decline. This is reportedly due to the company appointing Eric Sherb as the new CEO.
• Monogram Technologies Inc (NASDAQ:MGRM) rose 57.51% today after the FDA greenlit the company’s robotic knee surgery system. Roth Capital also raised its Q1 earnings estimates for the company last week.
• Arqit Quantum Inc (NASDAQ: ARQQ) rose 56.93% due to Nvidia’s GTC event bringing more attention to the company and spillover hype from D-Wave’s (NYSE: QBTS) quantum computing breakthrough claim last week.
• NanoVibronix Inc (NASDAQ: NAOV) rose 55.49% as the company published its UroShield study. The study showed positive data.
• Vtv Theraptcs Cl A (NASDAQ VTVT) rose 53.13% after it announced that the FDA lifted the clinical hold on its Cadisegliatin program for diabetes.

Some Top Losers Today

There were no big-name collapses today, though some smaller companies declined while others shed earlier gains. Peloton Interactive (NASDAQ: PTON) shed 6.52% today as it cooled off from a rally last week. Only these three stocks fell over 20%.

• Coeptis Therapeutics (NASDAQ: COEP) declined 23.15% as investors took profits. COEP was up by over 101% year-to-date before the recent decline.
• Workhorse Group (NASDAQ: WKHS) fell 22% due to adjustments after a reverse stock split. It announced that its Q4 and full-year 2024 earnings call will take place on March 31, 2025.
• Heidmar Maritime Holdings (NASDAQ: HMR) fell 21.74% as it cooled off from a massive rally that doubled the stock last week due to news of a $108 million contract.

The image featured at the top of this post is ©samxmeg / E+ via Getty Images.