The Mag 7 Ate Your Index

Seven stocks drove everything—now the rest are catching up.

For nearly two years, the S&P 500’s strength has been driven by an unusually small group of mega-cap stocks, leaving most of the market behind and masking historically weak breadth beneath the surface. That dynamic created a massive performance gap, but that trend is starting to shift. Participation is broadening, leadership is rotating, and the long-running imbalance could be setting up what could be a meaningful catch-up trade in the months ahead.