S&P 500 companies projected to outpace Magnificent Seven in profit growth

Market projections indicate that the remaining 493 companies in the S&P 500 may see faster profit growth than the 'Magnificent Seven' tech giants during the upcoming third-quarter earnings season. While the Magnificent Seven—comprising Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta, and Tesla—are expected to increase combined profits by 20.3 percent, the rest of the S&P 500 is forecasted to grow by 27.7 percent, according to data from Russell Investments.

This shift suggests a potential broadening of market participation. Although the S&P 500 has reached record levels, the equal-weighted version of the index has recently traded approximately 6 percent below its peak, indicating that market gains have been heavily concentrated in a few large-cap stocks like Nvidia. The tech sector currently accounts for nearly 40 percent of the S&P 500's total market value.