MONEY MASTER

The long-standing relationship between Big Tech and the broader market has  broken down — and that may signal a new opportunity for investors . Correlation Breakdown Signals Market Shift For the first time in years, the  Magnificent Seven and the equal-weight S&P 500 have decoupled , with correlation turning  negative since late February . This shift suggests: Big Tech is no longer moving in sync with the broader market Market leadership could rotate back to tech stocks Historically, such divergence has preceded  strong outperformance from Big Tech .  Big Tech Lagged — But Now Looks Attractive Before the recent shift, Big Tech had underperformed: Magnificent Seven index fell  7.3% (Oct–Feb) Equal-weight S&P 500 rose  8.9% This was driven by concerns over: Heavy AI spending (capex concerns) Slowing momentum in key names like  Nvidia However, the pullback has reset valuations: Valuation dropped to  <25x earnings , below long-term ave...

US equities extended their decline, with the  S&P 500 falling to a six-month low , as escalating Middle East tensions heightened  inflation fears and interest rate uncertainty . Broad Selloff as War Enters Fourth Week Markets weakened sharply as the  US-Israel-Iran conflict showed no signs of easing , raising concerns of a prolonged geopolitical shock. S&P 500 Index  fell  1.51%  to 6,506 Nasdaq C omposite Index  dropped  2.01% Dow Jones Industrial Average  declined  0.96% The  Russell 2000  also slid  2.26% , now down about  10% from recent highs , signalling broader market weakness. Since the conflict began in late February, major indices have fallen  4%–7% , reflecting deteriorating sentiment. Inflation Concerns Drive Rate Expectations Higher Rising oil prices continue to push  inflation expectations upward , prompting markets to reassess monetary policy. Futures markets now suggest the  Fede...

Quick Take Big Tech’s 2026 capital spending plans have  blown past expectations , sparking a sharp market reaction. Investors still believe in AI — but they now want  clear proof of returns , not just long-term promises. The CapEx Shock Across recent earnings, mega-cap tech companies pushed 2026 CapEx from  “already massive”  to  “historically extreme” : Meta Platforms : US$115–135B vs US$110B consensus Stock jumped ~10% initially, but gains faded →  investors want evidence, not AI rhetoric Microsoft : US$140–150B vs US$109B consensus Stock fell ~10% →  ROI timing now under scrutiny Alphabet : US$175–185B vs US$115B consensus Shares slipped as markets adjusted to a  more capital-intensive Google Amazon : ~US$200B vs US$146B consensus Stock dropped ~11% after-hours on cash flow concerns What Investors Are Really Worried About This is no longer about believing in AI — it’s about  financial optics and timing . Key Market Fears CapEx is rising fa...

Key Takeaway:  The  S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all closed at record highs Monday , powered by strong gains in  Nvidia (+4%)  and  Apple (+4.3%) . Investors also welcomed dovish Fed signals, though inflation concerns and mixed moves among the “Magnificent Seven” kept the session balanced. Wall Street extended its bull run on Monday as all three major indexes set fresh records, fueled by optimism in big tech. The  Nasdaq Composite  added  157.5 points (+0.7%)  to close at an all-time high of  22,788.98 . The  S&P 500  gained  29.39 points (+0.4%)  to finish at  6,693.75 . The  Dow Jones Industrial Average  rose  66.27 points (+0.1%)  to  46,381.54 , also a record close. The rally was led by  Nvidia (NVDA)  and  Apple (AAPL) , two of the most influential components of all three indexes. Nvidia advanced  4%  after announcing pl...

S&P 500 : Wiped out a 1% intraday gain, marking first such reversal since April amid Trump’s Aug 1 tariff deadline. Magnificent Seven : Index hit all-time highs;  Microsoft (MSFT)  briefly topped US$4T market cap,  Meta (META) surged 11%. Apple (AAPL) : Posted better-than-expected sales after-hours. Amazon (AMZN) : Guidance disappointed, weighing on sentiment. Tariff Watch : Trump set to sign executive order on new tariff rates Friday; deals secured with EU, UK, Japan, South Korea; unilateral tariffs on India, Brazil; Mexico gets 90-day extension. Pharma Under Pressure : Trump sent letters to 17 major drugmakers demanding US price cuts. Bonds & FX : 10-year Treasury yield steady at 4.36%; Dollar rose for sixth day, capping best month of 2025; Yen weakened after dovish BOJ tone. US Data : Core PCE inflation +0.3% MoM, +2.8% YoY; consumer spending barely rose, highlighting sticky inflation and cautious Fed stance. Jobs in Focus : Markets eye July payrolls; unemploym...

Big tech stocks surged in late trading on Wednesday, led by Tesla Inc's 9% rally following strong earnings results that kicked off the "Magnificent Seven" earnings season. Despite recent volatility, Wall Street showed signs of rebounding, with a US$300 billion exchange-traded fund tracking the tech-heavy Nasdaq 100 gaining after hours . Tesla's impressive performance came as the company forecast higher vehicle deliveries for the full year, boosting investor confidence and setting the stage for further gains in the tech sector. "Earnings season is heating up, and we believe there is continued upside for stocks , especially now that we're entering a seasonally strong period," said David Laut from Abound Financial. After last week’s stock rally to new all-time highs, equities have taken a breather, with investors weighing near-term risks such as big tech earnings , the October payrolls report , the US election , and the upcoming Federal Reserve meeting ....