Is S&P 500 Earnings Growth Finally Set To Broaden Beyond the Magnificent 7? [Video]

The Magnificent 7‘s lead in driving most of the S&P 500’s earnings growth could soon come to an end, as analysts project earnings for the second quarter of 2024 will show slowing growth among the group, while the other 493 companies are expected to post the first growth quarter since the fourth quarter of 2022.

The Magnificent 7, a group that includes Microsoft (MSFT), Amazon (AMZN), Meta (META), Apple (AAPL), Alphabet (GOOGL), Nvidia (NVDA) and Tesla (TSLA), dominated S&P 500 earnings growth in the last three quarters, but Bank of America analysts expect second-quarter results to show growth broadening beyond the small group of stocks.

S&P 500 companies excluding the Magnificent 7 are expected to post their first growth quarter since the fourth quarter of 2022, according to Bank of America analysts.

The analysts project a slowdown for the Magnificent 7 while the other 493 constituents in …