US Tech Stocks Recover, But Underperform Compared to Global Competitors
US equities showed recovery, driven by major tech companies. Key points include:
- The Magnificent Seven stocks performed well, led by Meta's record 12-session winning streak and positive momentum for Alphabet ahead of earnings.
- As of last Friday, 36% of S&P 500 companies reported Q4 2024 results; 77% exceeded earnings expectations, matching last year’s performance.
- 63% of companies beat revenue forecasts, slightly below five and ten-year averages.
- Big Tech underperformed compared to foreign stocks, with NVDA down nearly 15% year-to-date.
- Alibaba saw a 21% rise in 2025, while Xiaomi and Hynix gained 16% and 10% respectively.
- The CBOE Volatility Index declined after reaching around 19.6, indicating elevated market uncertainty.
- Ongoing tariff uncertainties may impact global equity markets moving forward.