According to external sources, the US share has been weak in the recent past and the core pressure does not come entirely from the macro, but from the fall of weights. As the highest-weight group of stocks in the 500 standard, Mag 7 has fallen, and even when most sectors rise, it is difficult to offset the burden at the index level.
According to the data, Mag 7 evaporated a total of about $3 trillion in market value this month, tracking the ETF of these seven equities fell by 13 per cent in June, while removing Mag 7's large capitalization ETF increased over the same period. This division also leaves NASDAQ significantly behind the dots and Russell 2000 index.
Macro's not going to pull back.
The article mentions that the market has not been unprofitable recently. The fall in oil prices, the United States core PCE in May meets expectations, the downside of the 10-year-old US debt return, and the strong financial disclosure of the US in the light of the light, support risk assets in common logic.
But the market response was not uniform. VIX remains relatively high, Mag 7 continues to press. According to external sources, this means that the problem lies more in the holding structure than in the macro data itself.
Funds moved from Platform Unit to upstream chip
Over the past few years, “doing more Mag 7” has been one of the most crowded transactions on Wall Street. Today, funds have begun to move up the AI industrial chain, especially to chip, hardware and equipment companies.
As mentioned in the paper, the market value of U.S. Hong Kong rose rapidly after the financial statements, and Appled Materials and Chase were at the top of the crowded list of hedge funds. By contrast, Amazon, Meta, Microsoft and Alphabet continue to invest in AI infrastructure, and the market's interest in the pace of their capital spending and returns is clearly warming.
The article also notes that AI is becoming fragmented within the ecology: companies that provide calculators and chips perform better, while the cloud computing platform unit, which covers large-scale expenditures, is in a weak position. At the same time, some non-AI blocks, value units and small capitalization shares began to receive financial inflows.
Rational changes in valuation and volatility
According to external sources, Mag 7 is currently facing not only short-term reversals, but also expected revaluations. While the forward valuation premium for some shares has clearly narrowed, the market is no longer willing to continue to set higher prices for high-growth narratives, as it did in 2023.
Citing historical cases, the article states that the market's popularity of the “core white horse unit” tends to lead to longer periods of repair after emotional transition. Even if the company ' s fundamentals remain strong, stock prices may not quickly return to previous highs.
At the transaction level, QQQ is not far from historical heights, but the implied volatility has risen significantly. According to external sources, this performance is more of a high-level, centralized adjustment than a full-scale risk avoidance. The hedging and rebalancing of options with leverage ETFs is also increasing the two-way volatility of the index.
Finally, it was mentioned that companies such as Google, Microsoft, Meta and Amazon had recently remained popular in the bond market because they needed to finance data centres and chips on a continuous basis. For equity investors, however, the more critical question now has turned to whether high AI expenditures can continue to be translated into stable profits and whether markets are willing to pay high valuations for such expenditure cycles.