The global stock market has been witnessing a spectacular run, a phenomenon not in the least primarily driven by the renowned Magnificent Seven” – Apple, Facebook, Amazon, Microsoft, Google, Tesla, and Netflix. In contrast to popular belief, this noteworthy market performance can be attributed to the combined effort of a plethora of multinational corporations, exhibiting the true strength of diversity.
Considering the unprecedented global pandemic and its consequential economic crisis, this uptick in stock market performance comes as a surprise to many. Investors worldwide have been drawing their attention towards the underdogs of the market rumble, turning heads away from the typical frontrunners, the ‘Magnificent Seven.’
The prevailing driving force behind this surprising market surge cannot be tied to any one particular element. Rather, it is a synchronized blend of an upbeat outlook towards future corporate earnings, notable progress on vaccine distributions, and adaptation to the ‘new normal,’ which incorporates changes in policy, technological innovation, and lifestyle changes on a global scale.
In the face of this stock market rally, investors are pouring billions into a myriad of exchange-traded funds (ETFs), such as ARK Innovation. Such funds have thrived during these turbulent times, identifying publicly traded companies that veer towards disrupting economic sectors with innovative products and services—this trend. No doubt, displays how innovation reigns supreme when uncertainty prevails.
A vital factor contributing to the performance of these emerging stocks is major breakthroughs in digitization and cloud computing. The stock market now dances to the tunes of companies such as Twilio and Zscaler, giants in cloud communications and cybersecurity, respectively. Not to mention Shopify, which soared into prominence by aiding many businesses transition online during the lockdown.
Other corporations such as Sea Limited and Square Inc. have also become prominent players during this market surge. Sea Limited, a leader in Southeast Asia’s digital economy, offers an array of services ranging from digital entertainment to financial services. Meanwhile, Square Inc., formed by Twitter CEO Jack Dorsey, has revolutionized small and medium-sized businesses through its simple and secure payment technology.
Of course, it wouldn’t be fair to push aside the green energy sector that had its fair share in the stock market elevation. Companies like Plug Power and Enphase Energy, both making strides in hydrogen fuel cells and solar power system production, saw their share prices rise meteorically, reflecting global concerns and a collaborative will power towards tackling climate change and making renewable energy the norm.
The healthcare industry is another vital contributor to the ongoing market rally. Companies like Moderna and Regeneron, working actively on the frontlines to develop a vaccine against COVID-19, saw their stock price increase significantly. Their critical role during an unprecedented global health crisis underlines how the market gravitates towards those who can mold cataclysmic events to their advantage.
In summary, while the ‘Magnificent Seven’ certainly continue to play important roles in global market trends, the recent market rally underscores the value of innovation and adaptability. The resilience of the emerging companies during this challenging time has proven that the stock market has enough room for everyone to showcase their potential and resilience. This resilience is a testament to the world economy’s ability to adapt, evolve, and surge forward, even amid crises.