‘Magnificent Seven’ becomes the ‘Fantastic Four’
Magnificent Seven,” a group of seven megacap technology stocks that drove the bulk of the S&P 500’s 24% advance in 2023.
But since the start of the year, the number of elite stocks responsible for the bulk of the S&P 500’s gains has continued to shrink.
Microsoft, Nvidia, Meta and Amazon have contributed roughly 70% of the S&P 500’s 4% year-to-date gain through Friday.
The stock market’s ‘bad breadth’ is making even stalwart bulls nervous - MarketWatch
Investor worries about market concentration aren’t going away,
... and it’s easy to understand why: the so-called Magnificent Seven mega-cap growth stocks now constitute about 29% of the S&P 500 Index by market weighting, eliciting ominous comparisons to the peak of the dot-com bubble. Index investors simply have too many eggs in too few baskets, the thinking goes. And they’re pricy baskets, to boot!
The latest round of earnings may allay some of those concerns.
Earnings: Implosion of Magnificent Seven Can Wait - Bloomberg
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