Wall Street’s Magnificent 7 shrinks to a Fab 4

The small group of stocks that’s been driving Wall Street to records is getting even smaller. Last year just a handful of companies were responsible for most of the U.S. stock market’s total return. It’s an exclusive enough club that they’ve come to be known as the “Magnificent Seven.” Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla alone accounted for 62% of the S&P 500’s return last year, including dividends. So far this year, just four have been responsible for more than half the S&P 500’s total return through February. Such a top-heavy market is a worrying signal for many market watchers.