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Tech Titans Tumble: S&P 500 Splits as Winners Emerge
14 Jan
Summary
- The equal-weight S&P 500 index saw gains while the main index declined.
- Most of the 'Magnificent Seven' tech stocks have declined year-to-date.
- Market analysts predict an end to tech stock dominance in 2026.
As of January 14, 2026, the S&P 500 index saw a minor dip yesterday, while the "equal weight" S&P 500, which values each stock equally, experienced a slight increase. This divergence suggests investors are increasingly distinguishing between strong and weak performers within the index, with many of the latter being the "Magnificent Seven" technology stocks.
The year-to-date performance for the broader market is positive, but the "Magnificent Seven" have largely underperformed. Only Alphabet and Amazon are in positive territory, while stocks like Tesla and Apple have seen notable declines. This concentration of performance in a few mega-cap tech stocks has been a dominant theme in recent years.
Wall Street anticipates a shift in 2026, with many believing the "Magnificent Seven's" dominance will wane as their valuations face sustainability challenges. Analysts point to slowing growth rates for these tech giants and increasing capital expenditures on AI, which could lead to a healthier market breadth as other S&P 500 components gain traction.
