Stock Market Update: The Stock Market saw a strong Start the year gain of 10%

Update: The stock market has seen a strong start to the year, with the climbing 10% in the first quarter despite and Tesla experiencing double-digit declines.

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The Magnificent Seven tech stocks, including Nvidia, Platforms, Microsoft, and Amazon, have continued to outperform, leading some to refer to them as the new Fab Four.

The market's rally without Apple and Tesla is seen as a bullish signal, with various sectors contributing to gains, fueling optimism about the economy and potential interest rate cuts.

Investors are closely watching U.S. manufacturing data and the monthly jobs report to gauge the market and economic trajectory. Nvidia remains a standout performer, driven by high demand for AI-related computing power.

Meta's investments in AI have boosted its shares, while Microsoft and Amazon have also shown improved profitability. Despite recent gains, some stocks appear less expensive than in the past, with expectations of a rotation out of big tech stocks into other sectors as the year progresses.

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Analysts predict that the earnings of the other 493 companies in the S&P 500 will outperform those of the Magnificent Seven by the fourth quarter, potentially leading to a shift in market dynamics. The dominance of the Fab Four may wane as it becomes challenging to surpass the explosive growth seen at the end of last year.

Unlike in the past, this year's market performance is not solely reliant on the Magnificent Seven, with Tesla and Apple facing challenges that have impacted their stock performance.

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