Slide in big tech stocks threatens stability of indices

• Published date: 31 October 2023

Tesla shares, too, have also come under pressure, with the electric car giant losing 15 per cent of its value since its recent disappointing earnings report. Weakness among mega-cap tech shares is a problem, because indices have become overly reliant on them

Warnings that indices were being propped up by the magnificent seven stocks – Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta – have lately grown louder. In aggregate, the seven companies had been expected to post a 33 per cent gain in earnings in 2023, compared to a slight decline for the rest of the S&P 500. The same seven stocks have been responsible for almost all of the S&P 500?s gains in 2023.

Quite simply, market breath stinks right now. Last week, just 28 per...