From Nasdaq:

The Magnificent 7 stocks – Apple, Amazon, Meta, Alphabet, Microsoft, Nvidia, and Tesla – are responsible for nearly 30% of the S&P 500’s market capitalization. In the fourth-quarter earnings season, these stocks delivered impressive growth figures. Total Q4 earnings for this group are expected to be up 48.7% on 14.5% higher revenues.

Market breadth has improved from the bear market lows, with more stocks joining the rally, indicating broader participation. The major U.S. indexes have reached new heights, suggesting the emergence of a new bull market. The increased breadth bodes well for a sustainable bull market in the longer term.

Tech stocks have led the advances this year, but other sectors like financials, industrials, and health care are also showing strength, with many individual stocks in these sectors making new 52-week highs. Novo Nordisk and Caterpillar are among the stocks that have soared to all-time highs.

The market is showing positive outcomes moving forward, with companies from a variety of sectors participating in the uptrend. As many technology stocks are extended past proper entry points, it’s a good time to diversify portfolio holdings and look for opportunities in other sectors. Make sure to take advantage of all that Zacks has to offer as we head further into the New Year.



Read more: Is It Really Just the Magnificent 7 Propping Up This Market?