(Reuters) – Traders betting against the “Magnificent 7” group of big U.S. technology stocks last week posted their biggest weekly profit of more than $10 billion, with the biggest gains coming from their short position in shares of Nvidia (NASDAQ: ) and Tesla (NASDAQ:), Ortex data showed.
The chip designer lost nearly 14% last week to record its worst weekly decline in more than 19 months, helping short sellers make more than $3 billion in profits.
Tesla, whose shares have lagged its coveted peers this year, also fell by an equal margin, generating $3 billion in profits for short sellers.
Bets against Microsoft (NASDAQ and Apple (NASDAQ ) generated $1 billion in profits each last week, according to the data.
The tech-heavy Nasdaq and benchmark index suffered six straight sessions of declines last week, their longest losing streak since October 2022, as evidence of U.S. economic resilience and still-high inflation eased. hopes for an interest rate cut in the short term.
Overall, the “Magnificent 7” lost nearly $1 trillion in market capitalization last week, according to LSEG data.
Tesla, Meta Platforms (NASDAQ , Alphabet (NASDAQ ) and Microsoft will be in the spotlight this week as the companies prepare to deliver their quarterly numbers.
“Weak iPhone sales data, poor Tesla delivery figures and regulatory pushback in the EU and US may be weighing on sentiment, but the impact of the markets' view on the market cannot be underestimated either. direction of interest rates,” AJ Bell said chief investment officer Russ Mold.
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“Investors will look to six of them for safety when they report their quarterly numbers,” Mold added.
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