Mid-Week Wrap: 08 May 2024
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Market Mood
Expectations for the Magnificent Sevens' earnings have been on the rise due to excitement over artificial intelligence, while forecasts for the remaining 493 companies have been declining but are now starting to reverse. Recent earnings surprises, particularly in the Health Care and Consumer Discretionary sectors, drove overall growth. Although non-Magnificents' profits lag expectations, the broader market has rebounded strongly, suggesting promising performance beyond the tech sector. However, high earnings multiples may not be entirely justified, and despite missed opportunities for bearish investors, challenges remain in the corporate sector.