# S&P 500 up 1.7% YTD as Magnificent Seven fall 4.9%

**Published:** 2026-06-18T13:07:29.552Z  
**Topic:** S P 500  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/66068c73-89ca-4c6d-86d0-31e1701e7e48

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 |

## Rotation away from AI‑heavy mega‑caps  

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.

## How the numbers reshape the market picture  

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.

## Sector winners and laggards  

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].

## What to watch  

- **Fed policy** – Upcoming Federal Reserve meetings could influence the rotation, especially if rate cuts or forward guidance shift risk appetite.  
- **AI spending trends** – Quarterly updates from the Magnificent Seven on AI‑related capital expenditures will signal whether the sector can regain momentum.  
- **Sector earnings** – Q2 earnings from energy and industrial firms will test whether their strong YTD performance can be sustained.

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.

## Sources
1. The Motley Fool — [Excluding the "Magnificent Seven" Stocks, Here's How the ...](https://www.fool.com/investing/2026/02/28/excluding-the-magnificent-seven-stocks-heres-how/)
2. Openingbelldailynews — [Stock Market Outlook: S&P 500 barely moves without Magnificent 7](https://www.openingbelldailynews.com/p/stock-market-outlook-investors-magnificent-seven-fed-rate-cut-powell-sp500)
3. Finbiteinsights — [Without Magnificent 7, S&P 500 YTD Returns 7%](https://finbiteinsights.substack.com/p/without-magnificent-7-s-and-p-500)

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Cite as: TrendWatcher, "S&P 500 up 1.7% YTD as Magnificent Seven fall 4.9%", https://www.trendwatcher.in/article/66068c73-89ca-4c6d-86d0-31e1701e7e48