In a market captivated by the relentless AI-powered rally in US equities, few on Wall Street seem to mind that only a handful of companies are leading the charge.
While the setup could be a recipe for pain should megacap heavyweights eventually falter, strategists see no sense in fighting it as long as Big Tech’s profit machine vindicates the momentum. The Magnificent Seven group of technology giants is on track to post 27% earnings growth from a year ago in the three months through September, about twice the expected advance heading into reporting season, data compiled by Bloomberg Intelligence show.