Magnificent 7’s Stock Market Dominance Shows Signs of Cracking
Bloomberg.com••business
Key Points:
- Many investors recently beat the market by heavily investing in the largest US technology stocks, known as the Magnificent 7.
- This strategy was highly successful for several years but faltered last year, marking the first time since 2022 that most of these tech giants underperformed the S&P 500 Index.
- In 2025, the Bloomberg Magnificent 7 Index gained 25%, outpacing the S&P 500's 16% rise, primarily due to significant gains from Alphabet Inc. and Nvidia Corp.
- Despite the overall index increase, the majority of the Magnificent 7 tech stocks did not perform as well as the broader market.
