Wall Street research veteran Ed Yardeni has ended a 15-year favorable stance on technology stocks by recommending an underweight position on the Magnificent 7. Yardeni cites increasing competitive pressures as the primary reason for this strategic shift, noting that these tech giants now face more aggressive competition both from each other and from emerging challengers. The analyst expects that technological advancements will boost productivity and profit margins across the broader S&P 500, potentially rebalancing market dynamics. In premarket trading following Yardeni's announcement, several Magnificent 7 stocks showed mixed performance, with Tesla, Meta Platforms, and Nvidia underperforming compared to their sector peers. This development signals a potential shift in market sentiment toward the technology sector that has dominated market returns for over a decade.

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