Despite a market rebalancing away from large tech companies, reflected by an over 10% correction in the Roundhill Magnificent Seven ETF
The Data: The Magnificent 7 comprises seven of the largest U.S. technology companies weighted heavily in the SPDR S&P 500 ETF Trust
- Apple Inc
(AAPL ) , 6.93% of the index. - Microsoft Corp
(MSFT ) , 6.66% of the index. - NVIDIA Corp
(NVDA ) , 5.95% of the index. - Alphabet Inc
(GOOG ) (GOOGL ) , 4.45% of the index. - Amazon.com Inc
(AMZN ) , 3.94% of the index. - Meta Platforms Inc
(META ) , 2.45% of the index. - Tesla Inc
(TSLA ) , 1.4% of the index.
All components have been in the red over the past 10 market sessions at a higher magnitude than the nearly 3% drop seen in the overall S&P 500. The small-cap Russell 2000 index is up nearly 10% in that period.
Still, the Magnificent 7 collectively comprise around 32% of the S&P 500.
Why it Matters: The data reflects a persistent market bullishness in artificial intelligence and Big Tech.
The current correction has lessened Magnificent 7's year-to-date performance to a degree, but the Roundhill ETF, which tracks the seven companies, is still up over 35% in 2024.
Several experts have predicted a larger market correction, describing the valuations of NVIDIA and other heavily weighted stocks as "bubble-ish."
