'Magnificent 7' shares might not be the industry focus anymore: Strategist



The S&P 500 has been on a tear, largely due to the “Magnificent Seven” – Amazon (AMZN), Apple (AAPL), Alphabet (GOOG,GOOGL), Nvidia (NVDA), Meta (META), Microsoft (MSFT), and Tesla (TSLA) which make up about a third of the value of the index. With some bullish sentiment on Wall Street gaining momentum, will the other 493 companies have their moment in the sun?

BofA Securities US equity strategist Ohsung Kwon joins industry Domination to discuss the potential for a broadening out past the big tech shares that have dominated the industry in the past several months.
“So we’re seeing a diverging trend between the Magnificent Seven and the [S&P] 493 happening this quarter. So the other 493 was basically in an earnings recession up until last quarter. We expect this earnings season is going to be the first quarter for the other 493 to post positive earnings development since Q4 of ’22, whereas the Mag 7, their earnings development is expected to decelerate for the second straight quarter and again in Q3. And by Q4 of this year consensus points to basically similar development rates between the two and I think that will really be the catalyst for the rotation in the industry to take place,” says Kwon

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