Magnificent Seven Influence Over S&P 500 Has Never Been Greater

(Bloomberg) -- The Magnificent Seven haven’t all lived up to their billing, but that hasn’t stopped the tech stocks from becoming even bigger relative to the rest of the S&P 500 Index.

Despite poor performances this year from the likes of Apple Inc. and Tesla Inc., the group hit a record weighting in the benchmark on Thursday amid a broad rally in technology shares. 

The cohort, which also includes Alphabet Inc., Microsoft Corp., Nvidia Corp., Amazon.com Inc. and Meta Platforms Inc., now accounts for almost 30% of the S&P 500, more than the industrial, consumer staples, energy, materials, utilities and real estate sectors combined.

The tech giants have been buoyed by Nvidia, which has about 81% this year amid heavy demand for its chips used in artificial intelligence computing. Meta has jumped 47% while Amazon is up 24%. Microsoft and Alphabet have each outperformed the S&P 500. Apple is down about 9%. 

The group has been weighed down by a drop of around 30% in Tesla shares this year, as the firm contends with a slowdown in demand for electric vehicles. Investors have lacked clarity needed to bet on a lasting recovery. 

(Updates stock moves in paragraph four.)

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