Hal Turner
Germany’s Deutsche Bank said today “The AI bubble is the only thing keeping the US economy together.” Investors recoiled in disbelief upon hearing this, but when looking at the Earnings Per Share of the S&P 500, Deutsche Bank seems to be accurate.
The Standard and Poor’s 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 leading companies listed on stock exchanges in the United States.
Yet one-third of the value of the S&P 500 consists of the “Magnificent 7.”
The “Magnificent 7” (i.e. “Mag 7”) refers to seven large-cap technology companies: Apple, Microsoft, Alphabet (Google), Amazon, Meta (Facebook), Nvidia, and Tesla — that have driven significant market gains and have a substantial impact on the S&P 500.
These companies are dominant players in various sectors, including the internet, artificial intelligence (AI), and electric vehicles, and were named to evoke the 1960 Western film of the same name due to their role in driving market growth.