The short-term and intermediate-term outlooks for the Mag 7 stocks are negative, Matt Tuttle, the CEO of Tuttle Capital Management, told Schwab Network recently.
The Mag 7 consists of Nvidia (NVDA), Tesla (TSLA), Meta (META), Apple (AAPL), Amazon (AMZN), Alphabet (GOOG,GOOGL), and Microsoft (MSFT).
Technical and Macro Challenges
Of the Mag 7, only Meta is above its 200-day moving average, and usually “nothing good” happens to stocks when they are below that level, Tuttle said.
On the macro front, Washington’s economic plan, including the upcoming tariffs, is unfavorable for the names, he added.
DeepSeek Burst the AI Bubble
DeepSeek was the pin that burst the AI bubble that had previously propelled the Mag 7 higher, according to Tuttle.
“Until DeepSeek, it was thought that all the capex (spent on AI) would be rewarded. Now we’re starting to ask uncomfortable questions about that,” the investor stated.
Meanwhile, Tesla is being hurt by Elon Musk’s foray into politics, Tuttle noted.
“The overall backdrop for the Mag 7 will be tough in the short and medium term,” he warned.
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This article is originally published at Insider Monkey.
