The combined market capitalization of the Magnificent 7 stocks reached an all-time high of $19 trillion on Thursday. Microsoft (MSFT) contributed a helping hand after the company’s strong earnings report catapulted its value to over $4 trillion. Microsoft is now the second company behind Nvidia (NVDA) to surpass a $4 trillion market capitalization. Meta Platforms (META) is also accelerating higher after its earnings report beat expectations on both revenue and adjusted EPS.
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However, several warning signals have emerged in recent days.
Labor Market and Rising Prices Issue Warning Signs
This morning’s core Personal Consumption Expenditures (PCE) index for June showed a yearly rise of 2.8%, above the consensus estimate for 2.7%. Core PCE is the Fed’s preferred gauge of inflation. The PCE index rose by 2.6% year-over-year, also above the estimate for 2.5%. Economists are warning that the tangible effects of tariffs could materialize toward the end of the year.
The labor market could also be showing some cracks, as the hiring rate at the end of June stood at 3.3%, the lowest since November 2024. There were 7.437 million job openings in the U.S. as of June 30, less than the 7.500 million expected and falling from 7.712 million during the previous month.
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