
The Magnificent 7 (Mag-7) make up about one-third of the S&P 500’s total market value and have been the main contributors to earnings growth in recent quarters. For example, in 2023, S&P 500 earnings grew by 4.1%, but when we exclude the Mag-7, growth fell to -1.3%. While the Mag-7 are still expected to post strong earnings growth in the quarters ahead, their relative contribution to overall S&P 500 earnings growth is expected to decline, with the rest of the index (S&P 493) playing a larger role heading into 2025. To illustrate this, Mag-7 earnings are expected to rise 17.1%