Magnificent Seven Correlation Hits 10-Year Low as ETF Lags S&P 500 by 5 Points
Updated
Updated · CNBC · Oct 28
Magnificent Seven Correlation Hits 10-Year Low as ETF Lags S&P 500 by 5 Points
2 articles · Updated · CNBC · Oct 28
Summary
CNBC’s rolling 60-day measure of the 21 stock pairs in the Magnificent Seven has dropped to its lowest level in more than a decade, signaling the group no longer trades as a single block.
Different AI exposure and company-specific growth drivers are driving the split, pushing investors to focus on factors such as Azure, AWS, Google Cloud, Nvidia chip demand and Tesla’s robotics pivot.
7% year to date for the Roundhill Magnificent Seven ETF trails the S&P 500’s 12%, with only Nvidia and Apple beating the index while Tesla and Meta are down in 2026.
Apple’s 28% gain now leads the cohort after it was criticized for lagging in AI spending, underscoring how investor preferences have shifted away from treating all seven megacaps alike.
Microsoft and Alphabet report after Wednesday’s close, followed by Amazon on Thursday, giving investors fresh tests of whether stock-specific fundamentals will keep widening the group’s dispersion.