Magnificent Seven's Dominance Threatened as Growth Cools and Investors Rotate
• The "Magnificent Seven" mega-cap stocks have powered much of the S&P 500's gains recently
• Their dominant run may be ending as earnings reactions diverge and valuations have differentiated
• As growth moderates, investors may rotate within the Magnificent Seven and into other areas like biotech
• Recent reactions to Meta and Nvidia earnings showed vastly different prospects despite shattered expectations
• Rotation out of the Magnificent Seven into the broader market could prevent widespread gains but offer opportunities