Mag 7 starting to underperform [pdf]
The Magnificent Seven tech stocks are beginning to underperform relative to the broader market, suggesting a possible shift in market leadership as investors rotate into other sectors.
Background
- "Mag 7" (Magnificent Seven) refers to the seven largest US tech stocks: Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Meta (Facebook), and Tesla. They dominated market returns in 2023-2024, collectively driving most of the S&P 500's gains.
- This piece, from Apollo Global Management's "Daily Spark" newsletter, notes that the Mag 7 have recently begun to underperform the broader market — a potential signal that the long-running tech-led rally is narrowing or reversing.
- Why it matters: Because these seven stocks account for an unusually large share of total US market capitalization, any sustained underperformance could drag down index returns and shift investor sentiment away from mega-cap tech toward other sectors.