Sou Hu Cai Jing·2025-11-09 09:21Core Viewpoint - The significant rise in stock prices of the "Magnificent 7" tech giants over the past year has led to historically high valuations, raising concerns about potential overpricing and the risk of sell-offs triggered by any disappointing news [1][7][9] Group 1: Market Sentiment and Performance - Recent market sentiment towards tech stocks has cooled significantly, with major indices showing mixed results; the S&P 500 and Dow Jones increased slightly, while the Nasdaq fell, marking its worst weekly performance since April [3][4] - The "Magnificent 7" index and the Philadelphia Semiconductor Index experienced weekly declines of 3.21% and 3.89%, respectively, with notable drops in individual stocks such as Nvidia and Tesla [4][10] - A total market capitalization loss of approximately $800 billion (around 6.24 trillion HKD) was reported among eight leading AI-related companies [4] Group 2: Investor Concerns - Investors are increasingly worried about the high valuations of tech stocks, skepticism regarding the short-term profitability boost from AI, and rising expectations of liquidity tightening [3][7][9] - The ongoing U.S. government shutdown has led to the suspension of important economic data releases, contributing to uncertainty in the market [1][7] Group 3: Future Outlook - Analysts predict that the U.S. stock market may enter a "volatile market" phase, with a potential bottoming out of indices, as the market adjusts to high valuations and macroeconomic uncertainties [3][10] - There is a suggestion to focus on defensive assets such as consumer staples and healthcare, which are less affected by economic fluctuations, while being cautious with tech stocks due to their high valuations [10]