19 August 2026 1 minute read
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The ‘Magnificent Seven’ group of Big Tech companies is no longer the key driver of US equities, as the rally broadens out to other sectors.

Figure 1: It’s no longer just about Big Tech

S&P Magnificent 7 Index as measured by the Bloomberg S&P Magnificent Seven Index (BM7T Index) and the S&P 500 excluding Magnificent 7 Index as measured by the Bloomberg 500 ex Magnificent 7 Total Return Index (B500XM7T Index).

Source: Aviva Investors, Bloomberg as at 10 August 2026.

 

While earnings growth remains concentrated among companies supplying products and services to Artificial Intelligence hyperscalers, share price gains have become increasingly broad-based. From August 2025 to August 2026, the S&P 500 excluding the Magnificent Seven,1 rose by around 24 per cent, compared with approximately 19 per cent for the Magnificent Seven. After lagging for much of the period, the broader market steadily closed the gap and moved ahead during 2026. In other words, a wider range of companies - rather than a handful of well-known technology companies - is increasingly driving the rally.

Past performance is not a reliable indicator of future results.

The companies mentioned are for illustrative purposes only and does not constitute an investment recommendation.

Reference

  1. The Magnificent Seven refers to a group of technology-driven companies, namely Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.

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