(Reuters) – Traders who bet against the “Magnificent Seven” group of big U.S. technology companies recorded their biggest ever weekly gains of more than $10 billion last week, with the biggest gain coming from shorting Nvidia (NASDAQ) shares : ) and Tesla (NASDAQ:), Ortex data showed.
The chip designer lost nearly 14% last week, its worst weekly drop in 19 months, helping short sellers reap more than $3 billion in profits.
Tesla, which has lagged peers in the coveted group this year, also fell by a similar margin, resulting in a $3 billion gain for short sellers.
According to the data, bets against Microsoft (NASDAQ:) and Apple (NASDAQ:) generated $1 billion in profits in each of the last weeks.
The tech-heavy Nasdaq and the benchmark index suffered six straight sessions of declines last week, their longest losing streak since October 2022, as evidence of U.S. economic strength and still-high inflation dampened hopes of a rate cut anytime soon.
Overall, the Magnificent Seven’s market capitalization fell nearly $1 trillion last week, according to LSEG.
Tesla, Meta Platforms (NASDAQ:), Alphabet (NASDAQ:) and Microsoft will be in the spotlight this week as the companies prepare to report their quarterly results.
“Weak iPhone sales data, poor Tesla deliveries and regulatory pressure in the EU and US may be weighing on sentiment, but the impact of markets’ views on the direction of interest rates also cannot be underestimated,” AJ Bell. This was announced by Investment Director Russ Mold.
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“Investors will be looking for confidence from six of them when they release quarterly numbers,” Mold added.