The S&P 500 (SPY) is getting close to its all-time highs again after a selloff earlier this month due to a big boost from tech stocks like Nvidia (NVDA). More specifically, the Magnificent Seven tech giants have added over $1.4 trillion in market value since its August 5 bottom, which makes up almost half of the S&P 500’s $3.2 trillion gain during this time. In addition, the Nasdaq (QQQ) bounced back from correction territory in just 11 days. This marks the fastest recovery since 2011.
According to Yahoo Finance, experts like Ed Clissold from Ned Davis Research say it makes sense that tech, which led the drop earlier, is now leading the rebound. But it’s not just tech that is driving the rally—other sectors like Utilities (XLU), Consumer Staples (XLP), and Healthcare (XLV) have also hit 52-week highs, which indicates a broad market comeback.
This is further evidenced by a new record high for the S&P 500 equal-weighted index (RSP). While the S&P 500 is up 18% this year and outpacing the equal-weighted index, experts like Abby Yoder from JPMorgan believe there’s still room for growth across different sectors, especially as the U.S. economy shows signs of stabilizing.
Which Magnificent Seven Stock Is the Best Buy?
Of the Magnificent Seven stocks—Amazon (AMZN), Alphabet (GOOGL), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia, and Tesla (TSLA)—analysts expect the most upside potential from AMZN. In fact, its $223.58 per share price target implies over 25% upside potential.
