When will the S&P 493 companies outperform the Magnificent 7?

HSBC's strategists suggest this could happen soon, potentially throughout 2026, as Mag 7 earnings growth slows.

Why is HSBC bullish on the S&P 500's other companies?

HSBC believes heavy capital spending by the Magnificent 7 will slow their earnings growth, opening doors for other S&P 500 companies.

What does 'breadth' mean for the S&P 500?

Breadth refers to the expansion of stock market returns beyond a few dominant companies, indicating wider market health and opportunities for investors.

Home / Business and Economy / Beyond the Tech Elite: S&P 500 Set for Broader Gains

Beyond the Tech Elite: S&P 500 Set for Broader Gains

10 Dec, 2025

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Summary

HSBC predicts S&P 493 companies may soon outperform the Magnificent 7.
Mag 7 earnings growth is expected to slow due to heavy capital spending.
Broader market gains will signal health and benefit stock pickers.

Beyond the Tech Elite: S&P 500 Set for Broader Gains

The stock market's impressive run, marked by a third consecutive year of strong S&P 500 returns, has been largely driven by a handful of tech giants. However, a potential change is on the horizon, with analysts suggesting that companies outside the dominant 'Magnificent 7' might soon see their fortunes improve.

HSBC has put forth a compelling argument that the S&P 500's smaller constituents could begin to catch up. This outlook is supported by the expectation that substantial capital spending by the Mag 7 will temper their future earnings growth, creating an opening for other companies.