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S&P 500 gains 1.7% this year while the Magnificent Seven drop 4.9%; ex‑Mag stocks are up 2.9% and deliver only 7% of the index’s YTD rise.
The S&P 500 is up about 1.7% year‑to‑date, but that modest gain masks a 4.9% decline in the “Magnificent Seven” tech stocks and a 2.9% rise in the remaining 493 constituents [1].
| At a glance | |
|---|---|
| S&P 500 YTD | +1.7% |
| Magnificent Seven YTD | –4.9% (Roundhill ETF) |
| Ex‑Magnificent 493 YTD | +2.9% (Defiance ETF) |
| Ex‑Mag contribution to index | +7% vs. +16.3% overall |
The seven AI‑driven giants—Meta, Alphabet, Tesla, Nvidia, Apple, Amazon and Microsoft—have slipped from a 33% weighting in the index at the start of 2025 to a lower, yet still dominant, share, while the rest of the market has begun to carry more of the rally [2]. Edward Yardeni, who coined “Impressive 493,” notes a clear shift from the concentrated tech rally to broader sector strength, with energy up 23.2%, materials 17.7%, consumer staples 15.5% and industrials 14% YTD [1]. The broader market’s modest 1.7% gain therefore reflects a rotation rather than a uniform advance.
Without the Magnificent Seven, the S&P 500’s YTD return would be roughly 7%, half of the 16.28% total gain reported for the index [3]. The seven stocks alone contributed about 9.42% of the index’s rise, underscoring how much of the market’s performance is tied to a handful of names [3]. Meanwhile, 45% of the index’s constituents (225 stocks) are in the red, and the Nasdaq Composite is essentially flat, highlighting the lack of breadth in the rally [1][3]. The divergence between the headline index and its underlying drivers has prompted concerns that the market’s health is being overstated.
Energy, basic materials, consumer staples and industrials have all posted double‑digit gains, buoyed by a brighter outlook for housing and a resurgence in residential construction [1]. By contrast, the information‑technology sector is down about 2.5% YTD, and the Nasdaq Composite remains near‑flat, reflecting the slowdown in AI‑related spending and the mixed earnings results from the Magnificent Seven [1][3].
The market’s modest rise now hinges on the “Impressive 493” delivering broader growth, while the future path of the AI‑heavy mega‑caps remains a key uncertainty for the S&P 500’s upside.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jun 18, 2026 · How we report
The S&P 500 is a stock market index that tracks the performance of 500 large-capitalization companies listed on U.S. stock exchanges. It is maintained by S&P Dow Jones Indices and serves as a primary benchmark for the U.S. equity market.
The S&P 500 components are selected by a committee based on specific criteria outlined in the S&P 1500 methodology. These criteria focus on companies with large market capitalizations listed on U.S. exchanges.
The S&P 500 Dividend Aristocrats are component companies within the S&P 500 that have increased their dividends for at least 25 consecutive years. This designation identifies companies with a long-term track record of dividend growth.
Companies in the S&P 500 derive 28% of their collective revenues from countries outside the United States. The remaining 72% of revenue is generated within the United States.