Piper Sandler chief market technician Craig Johnson declared the Magnificent 7 trade likely over, pointing to a market rotation into Health Care and Financials. Speaking on CNBC on July 29, Johnson noted that Piper Sandler has been cutting its technology weighting since February and is taking profits in tech. He highlighted that Microsoft short interest is at its highest percentage of float since 2015, even as the company reported 18.3% revenue growth and a 123% jump in its AI business annual run rate. NVIDIA gained only about 6% year to date despite posting 85% revenue growth, while the Invesco QQQ Trust fell nearly 5% in a week. Over the same period, the Health Care Select Sector SPDR Fund rose 4.37% and the Financial Select Sector SPDR Fund gained 7.52% over the past month, outperforming the S&P 500's 8.64% year-to-date gain.
Microsoft Corporation
NVIDIA Corporation
Piper Sandler Companies