Magnificent 7’s Stock Market Dominance Shows Signs of Cracking
Enthusiasm for them is cooling as interest in the rest of the S&P 500 rises.
Photographer: Cedric von Niederhausern/BloombergTo beat the market in recent years, many investors applied a simple strategy: Load up on the biggest US technology stocks.
It paid handsomely for a long time. But last year, it didn’t. For the first time since 2022, when the Federal Reserve started raising interest rates, the majority of the Magnificent 7 tech giants performed worse than the S&P 500 Index. While the Bloomberg Magnificent 7 Index rose 25% in 2025, compared with 16% for the S&P 500, that was only because of the enormous gains by Alphabet Inc. and Nvidia Corp.