Questions are surfacing on Wall Street about whether the once-revered “Magnificent Seven” are losing their allure. A noteworthy event occurred in the U.S. stock market on Monday, sparking speculation and raising concerns about the future leadership of the market.

Despite all three major U.S. equity indexes reaching fresh 52-week highs, including the Dow Jones Industrial Average closing at its highest level in nearly two years, none of the “Mag 7” tech giants managed to finish in positive territory. Each member of this elite group of megacap technology stocks closed significantly lower, with the exception of Microsoft Corp.

This occurrence is highly unusual. The Nasdaq rarely finishes higher without contributions from its heavily weighted stocks. According to Dow Jones Market Data, Monday’s session marked only the second time since Meta Platforms Inc.’s market debut in 2012 that the Nasdaq-100 finished in the green while all seven “Mag 7” stocks closed in the red. The last instance was on November 9, 2016, following Donald Trump’s surprising victory in the U.S. presidential election.

The PHLX Semiconductor Index, a key indicator of the semiconductor industry’s performance, achieved a fresh record closing high on Monday without support from Nvidia Corp., an artificial intelligence powerhouse that has experienced a remarkable sales surge and a share price increase of over 200% this year.

Market strategists find the current situation noteworthy, particularly as the year-end approaches. Investors are contemplating who the new leaders in the stock market might be in 2024 after a year dominated by just seven stocks. Steve Sosnick, Chief Market Strategist at Interactive Brokers, emphasized the unsustainability of a market where a handful of stocks lead everything, expressing hope that other S&P 500 members would catch up.

Despite the concerns, caution is advised against interpreting Monday’s movements as a definitive indication of a sector leadership rotation. Market breadth appeared strong, with a substantial number of stocks rising in the Nasdaq-100 and the S&P 500. Semiconductors, notably boosted by Broadcom’s significant gain, took the spotlight on Monday, reflecting continued investor interest in the tech sector and the potential shift towards the next tier of technology stocks.

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