- US market rally broadens
- Tech, financials, healthcare led way in Q2
- 61% of S&P 500 outperformed the index average
The so-called ‘Magnificent Seven’ group of tech giants have underperformed the other 493 stocks in the S&P 500 by 14 percentage points since the release of a weaker-than-expected U.S. inflation report on July 11, according to an analysis by Bank of America Global Research.
With second quarter earnings season largely complete (seven companies are yet to report), London Stock Exchange data shows average earnings growth ran at 13% in the quarter, the strongest earnings growth since Q4 2021.
TECH, FINANCIALS, HEALTHCARE LED WAY IN Q2
Leading the way, tech, financials, and healthcare sectors all saw earnings growth of more than 20%, with only two sectors, materials and real estate, reporting earnings contraction.
The index has also seen rotation, with a broadening rally offering an encouraging signal to investors worried about concentration in technology shares.
A total of 61% of stocks in the S&P 500 outperformed the index in the past month, compared to 14% outperforming over the past year, Charles Schwab data showed.
