Analysis-Investors see US stocks rally broadening, even as ‘Magnificent Seven’ rebound

By Lewis Krauskopf

NEW YORK (Reuters) -Megacap technology and growth stocks have retaken U.S. market leadership in recent weeks, but investors say that factors are in place that could allow a broader group of stocks to outperform for the rest of the year.

After technology shares led by a small group of stocks known as the “Magnificent Seven” drove equity indexes higher in 2023 and 2024, much of Wall Street expected a broader swath of stocks to do better this year.

After stumbling in early 2025, the Magnificent Seven have stormed back amid an overall rebound in equities fueled by easing trade worries. The group, which includes Microsoft, Meta Platforms and Apple, has accounted for over 40% of the S&P 500’s total return…

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