October 7, 2024 Investor Insights
Magnificent 7 Falter
October 7, 2024
Enjoy this week's "Investor Insights," a weekly newsletter that highlights the financial news you need and provides tips and tricks for making better investment decisions.
- The Magnificent 7 mega-caps drove nearly all market gains in the first half of 2024. In the second half, they’ve contributed just 2.9% of the S&P’s rise, while the other 493 stocks made up 97.1%. 1
- OpenAI is now valued higher than 87% of S&P 500 companies. It raised $6.6 billion, reaching a valuation of $157 billion (up from last year’s valuation of $29 billion), making it one of the highest-valued private companies globally, alongside SpaceX and TikTok. 2
- Three states (California, New York, and Texas) are responsible for 40% of all issued municipal bonds. If the current tax cuts expire in 2025, interest in these tax-exempt municipal bonds may gain in popularity among high-income earners. 3
- The S&P 500 has risen by double digits this year, including a rare 2.1% gain in September. Historically, the market rises 79% of the time in Q4 after September gains, averaging a 5.1% increase. *4
Sources:
- Bespoke - "Equity Market Pros and Cons"
- MarketWatch - "Opinion: OpenAI is now worth more than 87% of S&P 500 companies. It faces a tough test ahead."
- WSJ - "Why Investors Are Putting More Money in State-Specific Muni ETFs"
- Barrons - "The Stock Market Looks Very Strong. Prepare for the S&P 500 to Hit 6000 Soon."
*Past performance is not indicative of future performance
Disclosure: This information is furnished for the use of Glen Eagle Advisors, LLC, Glen Eagle Wealth, LLC, and their clients and/or contacts. It does not constitute the provision of investment advice to any person. It is not prepared with respect to the specific objectives, financial situation, or particular needs of any specific person. Investors reading this commentary should consult with their Glen Eagle representative/financial advisor regarding the appropriateness of investing in any securities or adapting any investment strategies discussed or recommended in this newsletter.
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