The 2025 stock market rally isn’t just about the Magnificent 7

Nearly half of the companies in the S&P 500 (^GSPC) are outperforming the index to start the year, a stark reversal from the last two years of narrow market leadership where investors struggled to find winning stocks outside of large cap technology. About a month and a half into 2025, 46% of companies in the S&P 500 are outperforming the index itself, above the roughly 30% seen in each of the last two years, which had been the lowest percentage of outperformers since the late 1990s. Just two of the stocks outperforming the S&P 500 come from the “Magnificent Seven”…